Market Snapshot

European Stocks End Mixed as Traders Digest COVID-19 Infections Surge, Germany's Economic Data


Last updated: 11/24/2021 12:39:18

12:39 PM EST, 11/24/2021 (MT Newswires) -- European bourses were mixed at the end of Wednesday as investors monitored the rise in COVID-19 cases in the region, and as Germany's business climate declines more than expected in November.

The FTSE 100 in the UK was up 0.3%, and the Swiss Market Index and Stoxx Europe 600 were up 0.2%. Germany's DAX slipped 0.4% and France's CAC was marginally down.

Governments in the euro area plan to secure their economic rebound from the COVID-19 pandemic by prioritizing public spending in 2022, Bloomberg News reported, citing member states' draft budget plans. The document showed the European Commission urging the region's governments to be prepared to increase public spending again in the event of a new COVID-19 surge, along with limiting budget deficits once economic conditions permit without sacrificing investments.

The European Centre for Disease Prevention and Control recommended COVID-19 vaccine boosters for all adults, especially above 40 years old, Reuters reported, citing Head Andrea Ammon. The recommendation is a change of policy from the agency after in September the ECDC told that there was no immediate need for vaccinating the adult population with booster shots.

German business climate in November slumped slightly more than expected to its lowest in five months as local companies grapple with supply bottlenecks and the fourth wave of COVID-19, according to data by the Ifo Institute. Germany's business climate index, which surveys manufacturing, services, trade and construction, tumbled to 96.5 in November from 97.7 in October. The latest figure marginally missed the 96.6 consensus estimate.

On the corporate front, Telecom Italia (TIT.MI) was up over 15% after reports emerged that KKR may sweeten its offer to take over the Italian telecommunications firm to win over shareholders, such as French media giant Vivendi (VIV.PA), Bloomberg News reported, citing sources. The US private equity firm is considering raising its bid to about $0.7 to $0.8 per share from an indicative price of 0.505 euro ($0.57) per share, the report said. However, Telecom Italia has yet to give KKR access to its books, and KKR would need to carry out due diligence before submitting a revised proposal.
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