Europe close: Stocks stage partial rebound, Delta variant in focus

European shares staged a partial comeback on Tuesday, although some analysts expressed concern regarding the ongoing spread globally of the Delta Covid-19 variant.

"European markets have had an altogether more positive tone after yesterday’s declines; however, the shadow of Delta continues to overshadow wider sentiment," said Michael Hewson, chief market analyst at CMC Markets UK.

"There appears to be a growing realisation that for all the optimism over the UK’s vaccination progress, the travel sector will never recover properly until the rest of the world gets its act together when it comes to vaccines."

Against that backdrop, the pan-European Stoxx 600 index was up 0.31% to 456.37, alongside a 0.885 rise for Germany's DAX to 15,690.59.

On a more positive note perhaps, data published the day before by Bloomberg showed that 2.97bn vaccine shots had already been administered around the world.

The daily global vaccination rate as of 28 June meanwhile hit 45.6m.

The UK’s FTSE 100 slipped from morning highs, but was still 0.21% higher by the close, helped by data showing that British house prices jumped by the most in more than 16 years in June.

Shares in IWG, the world's largest serviced office group and rival to WeWork, rose 2% on reports the company has been in secret talks with private equity firm CC Capital about a potential takeover offer that could value the company at more than £4bn, Sky News reported citing unnamed sources.

However, CC Capital later issued a statement saying it did not plan to make an offer for the London-listed firm, although it did not deny talks had taken place.

Shares in French electrical parts supplier Rexel shares jumped as the company said it expected same-day sales growth of 12% - 15%, compared with its previous forecast of 5% - 7%.

Housebuilders were in demand after new figures from Nationwide revealed that UK house prices grew at their fastest annual pace for more than 17 years in June, up 13.4%. Taylor Wimpey, Persimmon and Barratt Developments were up as a result.

Travel company TUI was down 5% as cases of the Delta variant of the coronavirus continued to spread globally - hitting hopes of a summer-led recovery for the leisure industry. Reports of a potential ban on UK travellers in Germany, and new tighter travel rules for British tourists going to Spain also hit sentiment.

“Concerns (are) growing that the race between the vaccine and the virus is being lost,” said Hewson.