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23 Mar 2021 | 20:40

Europe close: Shares end mixed due to continued drag from Travel names

(Sharecast News) - European shares ended on a mixed note on Tuesday after Germany confirmed an extended lockdown into Easter as it tried to combat the third wave of Covid-19 infections currently spreading across the Continent, sparking fears of a delay to economic recovery. Investors were nonetheless also eyeing their potential interplay with travel restrictions in the UK.

"With the UK government putting a £5,000 fine in place for unjustified foreign travel, there is clearly a growing concern that summer may be heavily restricted thanks to the growing number of Brazilian Covid throughout Europe," said IG chief market analyst Chris Beauchamp.

"While the vaccination may significantly reduce the hospitalisations and extreme cases of Manaus Covid, the government seems likely to play it safe given the fear of further mutations if cases rise."

The pan-European Stoxx 600 index was down 0.2% at 423.31, alongside a 0.61% drop for the FTSE Mibtel to 24,113.86.

Germany's Dax on the other hand was edging up 0.03% to 14,662.02, while the Ibex 35 was ahead by 0.56% to 8,390.3.

Germany extended its lockdown for three weeks, said Chancellor Angela Merkel after talks with regional leaders. Current measures would remain until April 18, with restrictions will be even tougher from April 1-5, when most shops will be shut and gatherings will be limited.

Travel stocks slid on the news, exacerbating falls from Monday. Cruise line group Carnival was lower, along with airport and train station food outlet operator SSP, British Airways owner IAG, budget airlines easyJet and Ryanair.

Shares in Swedish truckmaker Volvo slumped 7.04% after the company warned a shortage of semiconductors would have a substantial impact on second quarter production.

Volvo on Monday night reported it would introduce "stop days" across its global truck manufacturing operations, as it struggled to obtain chips.

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