European shares slip as COVID surge in China weighs

European shares slipped on Thursday in thin holiday trading, as the market neared the end of a rough year where it struggled with geopolitical tensions and growing fears of an economic slowdown due to aggressive rate hikes by central banks.

The region-wide STOXX 600 fell 0.4 percent. For the year so far, it is down 12.8 percent.

After a brief jump this week, global markets are nervous about Beijing’s move to further relax COVID curbs as surging infections in China dimmed hopes of a swift recovery in the world’s second-largest economy.

China-exposed luxury firms such as LVMH and Richemont weighed on the European index in early trading.

Energy stocks fell 0.6 percent, while miners dipped 0.3 percent, tracking weakness in commodity prices.

Consumer staples such as Nestle and L’Oreal SA fell 1.2 percent and 0.5 percent, respectively.

Novartis AG slipped 0.5 percent after the Swiss drugmaker said it will pay $245 million to resolve civil litigation accusing the company of trying to delay the launch in the U.S of generic versions of the Exforge blood pressure treatment.