European shares increase slightly

On Friday European shares moved slightly higher and were in a position to close a difficult week higher as investors bought stocks battered by concerns around the Omicron variant, although gains were largely subdued before the publication of U.S. monthly jobs data.

The pan-European STOXX 600 rose 0.1% after swinging between losses and gains all week on concerns over the potential effect of the newly discovered coronavirus variant on economic recovery.

European stocks are positioned to close the week with slight gains as the market outlook has been blurred by new restrictions due to the new variant and increasing price pressures ahead of the winter. The European Central Bank may set policy for a relatively short period at this month’s meeting given intensified insecurity, President Christine Lagarde told Reuters. Lagarde, however, repeated the view that inflation will decrease in 2022, including that it may have already peaked.

Attention is on the U.S. jobs data that is likely to show employers increased hiring in November, giving the economy a strong boost, though worker shortages remained a restraint.

IHS Markit’s survey illustrated that euro zone business activity wasmenhanced last month, but the leap may be short-term as demand growth diminished and worries about the Omicron coronavirus variant hit optimism. Travel stocks gained 1.3%, rebounding from last week’s sharp losses after fresh curbs.

Oil stocks gained 1.2%, following crude prices, after OPEC+ said it would assess supply additions before its next meeting if the virus reduces demand.

Among individual stocks, Dassault Aviation increased 8.3% to the top of the STOXX 600 after France concluded a deal for 80 Rafale warplanes with the United Arab Emirates - the largest order ever for the warplane. German insurer Allianz rose almost 2% after it raised its mid-term targets and announced a new dividend policy. Swedish Orphan Biovitrum (Sobi) shed 22.8% after U.S. private equity firm Advent International and Singapore’s sovereign wealth fund said they were withdrawing their bid for the drugmaker.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.