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European stocks head lower ahead of business activity data

Published 01/22/2021, 04:16 PM
Updated 01/22/2021, 04:20 PM
© Reuters.

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
Jan 22 (Reuters) - European stocks fell on Friday, hit by
tighter travel restrictions in the euro zone and weak UK retail
sales numbers, while investors awaited the latest batch of
business activity data to gauge the pace of recovery from the
coronavirus crisis.
The pan-European STOXX 600 index .STOXX fell 0.4% by 0805
GMT, but was set for slim weekly gains.
Germany's Lufthansa LHAG.DE and Air France AIRF.PA fell
about 2%, while holiday group TUI (LON:TUIT) TUIGn.DE tumbled 10% after
the European Union proposed to label hotspots of COVID-19
infections as "dark red" zones, and travellers from those areas
will have to take a test before departure and undergo
quarantine. UK's FTSE 100 .FTSE fell 0.3% after retail sales bounced
back weakly in December, marking their worst year on record,
while public debt climbed to its highest since 1962.
Investors are awaiting IHS Markit's early readings of the
euro zone and UK Purchasing Managers' Index (PMI) for January,
which is likely to show business activity contracted from
December due to renewed lockdowns.
Among gainers, German engineering group Siemens AG
SIEGn.DE rose 4.1% as it reported stronger-than-expected
preliminary results for its first quarter, driven by a strong
performance of its digital division.

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