Europe midday: Shares flat as China Covid surge in focus

European shares were flat by midday on Thursday, with the surge in Chinese Covid cases at the forefront for investors.

The pan-regional Stoxx 600 pared early losses to be even on the day, with major bourses mixed as the US joined the growing list of nations requiring negative Covid tests for travellers arriving from China.

Japan, Italy and South Korea also imposed the measure. The UK, which was criticised for its slow response to the pandemic’s outbreak in 2020, said it had no plans to implement any restrictions.

Sentiment was also hit by Russia pounding Ukraine with a massive missile strike on several cities, including the capital Kyiv.

Luxury firms with an exposure to China, such as LVMH and Richemont were lower. Energy majors BP and Shell fell after a decline in crude oil prices, driven by fears of an economic slowdown in the world's second-largest economy.

Airlines were lower on the prospect of new Covid restrictions dampening demand from Chinese tourists, with Lufthansa, easyJet, British Airways owner IAG and Wizz Air all flying lower. Wizz and easyJet were also hit by news that Italian competition authorities had started a probe into alleged price fixing on flights to Sicily.

Reporting by Frank Prenesti for Sharecast.com