LONDON: On Thursday, European stock markets opened lower, after down in Asia, as investors worried about China’s most recent Covid spike.
The benchmark FTSE 100 index for London decreased by 0.8 percent to 7,435.59 points from its closing value on Wednesday.
The Paris CAC 40 fell 0.5 percent to 6,478.57 points and Frankfurt’s DAX index dropped 0.3 percent to 13,887.90 points in the eurozone.
Following Beijing’s announcement that it will lift limits on international travel as Covid cases rise, the United States has joined an increasing number of nations in placing restrictions on travellers from China.
Investors had earlier applauded China’s relaxation of its rigorous zero-Covid regulations, which had severely hurt the second-largest economy in the world. However, they are now concerned about how the outbreak may affect global supply chains and inflation.
Health experts in other nations worry about an increase in instances linked to Chinese travellers, according to Stephen Innes, an analyst with SPI Asset Management.
Richemont and LVMH, two luxury companies that are exposed to China, were early European stock index draggers.
Following a decline in commodity prices, miners and energy companies both dropped by 0.3%.
Consumer goods companies like L’Oreal SA and Nestle declined by 1.2% and 0.5%, respectively.
Novartis AG fell 0.5% after the Swiss pharmaceutical company announced it would pay $245 million to settle a civil lawsuit accusing it of attempting to stall the introduction of generic versions of the Exforge blood pressure medication in the United States.