European markets build on gains as investors digest omicron news; health care up 1% – CNBC

LONDON — European stocks were higher on Wednesday, with investors continuing to digest the latest news around the new omicron Covid variant.

After an uncertain open, the pan-European Stoxx 600 added 0.4% in early trade, with health care stocks gaining 1% while autos slid 0.3%.

The positive trade in Europe comes after a strong session on Tuesday, with global markets rallying as concerns about the potential severity of the omicron variant eased.

There have been mixed news regarding the omicron variant since. Pfizer CEO Albert Bourla on Tuesday said the omicron variant appears to be milder than previous strains, but also seems to spread faster and could lead to more mutations in the future.

However, South African scientists said Tuesday that omicron significantly reduces the antibody protection generated by Pfizer and BioNTech’s vaccine, according to a small preliminary study. Still, people who have recovered from the virus and received a booster shot will likely have more protection from severe disease, the study showed.

Earlier, the White House’s chief medical advisor Dr. Anthony Fauci said preliminary data from South Africa last week was “encouraging” as it suggested omicron is not as severe as initially feared, while noting that more data is needed to fully assess the risk posed by the variant.

In the meantime, the U.S. CDC said Tuesday that the new variant has now been found in 50 countries and 19 American states.

Overnight in Asia-Pacific, Hong Kong stocks lagged other markets, with troubled Chinese real estate developers back in the spotlight. Chinese social media giant Weibo also had a disappointing market debut in Hong Kong.

U.S. stock futures rose modestly in early premarket trading on Wednesday after stocks continued their upward climb from the omicron sell-off seen last week.

In terms of individual share price movement in Europe, British investment firm Man Group gained 5.7% after announcing a share buyback program of up to $250 million.

At the bottom of the European blue chip index, German meal kit delivery company Hellofresh fell 6% after missing earnings expectations.