European Stocks Close Weak As Delta Variant Concerns Weigh On Sentiment

(RTTNews) - European stocks closed notably lower on Monday, weighed down by concerns about fresh travel-related restrictions due to the spread of the delta variant of Covid-19 in several parts of the continent.

According to reports, Portugal, Spain and Germany have issued new travel restrictions, aiming to limit the spread of the more contagious Delta coronavirus variant.

Non-vaccinated Britons travelling to Portugal will need to go through mandatory quarantine for two weeks, according to an order published by the Portuguese government. Also, anyone travelling to mainland Portugal by air, land or sea, will have to prove they have been fully vaccinated or have to isolate.

Airlines and hospitality industry stocks tumbled on concerns about coronavirus-related restrictions. Energy stocks were weak following a drop in crude oil prices, while miners slipped after China's industrial profits dropped in the month of May.

The pan European Stoxx 600 slid 0.59%. The U.K.'s FTSE 100 declined 0.88%, Germany's DAX ended 0.34% down and France's CAC 40 lost 0.98%, while Switzerland's SMI edged up 0.08%.

Among other markets in Europe, Austria, Belgium, Greece, Ireland, Netherlands, Norway, Spain, Sweden and Turkey ended notably lower.

Czech Republic, Iceland, Portugal and Russia ended marginally down, while Denmark, Finland and Poland closed higher.

In the UK market, Burberry Group shares tumbled nearly 9% as Marco Gobbetti quit as chief executive of the luxury fashion brand.

IAG and Rolls-Royce Holdings plunged 5.9% and 5.6%, respectively. British Land, Royal Dutch Shell, BP, Intercontinental Hotels Group, CRH, Prudential, BT Group and Anglo American Plc lost 2 to 4%.

JD Sports Fashion shares declined sharply after the company announced that its existing 50.02% intermediate holding company in Spain, Iberian Sports Retail Group SL, has entered into a conditional agreement to acquire 80% of the issued shares in Deporvillage SL.

AstraZeneca, Avast, Ocado Group, Rentokil Initial, British American Tobacco and Scottish Mortgage gained 1 to 2%.

In France, Unibail Rodamco, Safran, Technip, Faureica, Accor, Vinci, Airbus Group, BNP Paribas and Societe Generale lost 2 to 5%. ArcelorMittal, Renault and Credit Agricole also ended notably lower.

Danone moved up more than 2%. Sanofi closed on a firm note after it agreed to sell a portfolio of regional consumer brands to Stada.

Pernod Ricard, Dassault Systeme and STMicroElectronics also closed higher.

In the German market, Lufthansa shed more than 3%. MTU Aero Engines, Daimler, BMW, Thyssenkrupp, Continental, Deutsche Bank, Volkswagen and HeidelbergCement ended lower by 1 to 2.5%, while Linde and RWE closed notably higher.

In economic news, Germany's import prices increased at the fastest pace since 1981, data published by Destatis revealed.

Import prices logged a double-digit annual growth of 11.8% in May, following a 10.3% rise in April and faster than the expected increase of 11.3%.

The latest increase in import prices was the fastest since October 1981, when prices climbed 13.6%.

Month-on-month, import price growth increased to 1.7% from 1.4% in April. Prices were forecast to gain 1.5%.