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(Reuters) -European shares eked out slim gains in light holiday trading on Friday, following a recent rally in global shares on signs the Omicron coronavirus variant may not derail global economic recovery.
The pan-European STOXX 600 was flat after adding nearly 1% in the previous session. Travel stocks led gains among sectors, rising 0.4% to extend a recent run-up.
London’s FTSE added 0.4%, while France’s CAC 40 gained 0.1%.
Stock markets in several countries including Germany, Italy, Spain, Switzerland and the U.S. are closed on Friday for Christmas. Bourses in London and France saw shorter trading sessions.
Most Asian markets edged higher and the S&P 500 closed at a record high overnight on positive economic data and as some studies suggested the Omicron variant carries a lower risk of hospitalisation.
Meanwhile, on Thursday, Italy tightened restrictions, including banning all public New Year’s Eve celebrations as daily COVID-19 infections hit a record high.
“The European market is moving in tight ranges, a little bit biased to the upside, due to light holiday trading and also driven by fears of possible restrictions and lockdowns,” said Raed Alkhedr, chief market analyst at Equiti Group.
The STOXX 600 is entering the holiday period on a quiet note after rallying 21% so far this year, following a 4% drop last year.
Though 2021 was marked by accommodative fiscal stimulus and positive corporate earnings, supply bottlenecks, inflationary pressures and a new COVID-19 variant threaten growth and recovery into 2022.
“Santa Claus isn’t starting a year end cheer-leading party in equity markets, but rather evoking a ‘Santa pause’ after this year’s bull run,” Vishnu Varathan, head of economics and strategy at Mizuho Bank, said.
The benchmark index has added nearly 2% so far this week.
French real estate firm Icade climbed 0.6% after announcing its healthcare property business acquired four private hospital properties in Portugal for 213 million euros.
Biotech firm Lysogene jumped 7.5% after entering a 15-million-euro loan agreement with the European Investment Bank to accelerate its gene therapy platform.
BNP Paribas (OTC:BNPQY) advanced 1% after sources told Reuters the French bank along with U.S. firm State Street Corp (NYSE:STT) are vying to buy the custody business of Spanish lender BBVA (MC:BBVA) and have made indicative bids for the unit.
