European shares fall on inflation, pandemic woes

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany

European shares fell on Wednesday as worries about rising inflation and the Delta variant of the coronavirus hit economically sensitive sectors, even as technology stocks tracked an overnight surge in U.S. tech stocks to record highs.

The pan-European STOXX 600 (.STOXX) was down 0.1% by 0718 GMT, with banks (.SX7P), energy (.SXEP) and mining (.SXPP) shares falling between 0.3% and 0.8%.

The European benchmark is on course to post its biggest percentage gain in the first six months of a year since 1998, but the double whammy of high inflation as well as the global spread of the highly contagious Delta variant has recently slowed gains.

If the STOXX 600 ends Wednesday’s session down 0.4% or more, it will mark its best first-half of a year since only 2019.

After a sharp rise in June economic sentiment lifted European stock indexes in the previous session, focus will be on German unemployment figures and euro zone inflation data due later in the day.

In company news, Dutch eyewear store operator Grandvision (GVNV.AS) surged 14% as Ray-Ban maker EssilorLuxottica (ESLX.PA) said it had decided to go ahead with a planned takeover of the company. EssilorLuxottica’s shares were up 1.3%. read more

Technology stocks (.SX8P) rose 0.4% following a record high close for the U.S. Nasdaq in the previous session.

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