European stocks steady after sell-off, travel sector hit again

The German share price index DAX graph at the stock exchange in Frankfurt

(Reuters) – European stocks stabilised on Tuesday after a sell-off in the previous session, as technology and healthcare stocks gained, but worries about new coronavirus restrictions in Britain and elsewhere kept travel stocks under pressure.

The pan-European STOXX 600 index <.STOXX> rose 0.5% by 0716 GMT, holding ground after its worst session in three months. The technology sector <.SX8P>, which has outperformed this year, rose 1.5%, while healthcare stocks <.SXDP> were up 0.6%.

With COVID-19 cases rising rapidly in the UK, Prime Minister Boris Johnson is set to announce fresh restrictions that includes closing of pubs, bars, restaurants and other hospitality venues at 10 p.m. across England.

Pub owners JD Wetherspoon <JDW.L>, Mitchells & Butlers <MAB.L> and Marston’s <MAR.L> fell between 1.2% and 3.6%.

Premier Inn-owner Whitbread <WTB.L> slipped 2.8% after saying it plans to cut 6,000 jobs in its hotel and restaurant units, as the pandemic hammers the travel and hospitality sectors.

Travel & leisure stocks <.SXTP> fell 0.7% after a 5.2% drop in the previous session, while banks <.SX7P> were down 0.3%, adding to a 5.7% slump.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)



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