European Bourses Close Largely Lower as Investors Monitor Developments Around Omicron Variant

European stocks were largely lower as traders continued to evaluate the latest developments around the omicron variant of COVID-19.

Germany's DAX fell 0.8%, France's CAC 40 was down 0.7% and the Stoxx Europe 600 dipped 0.5%. The FTSE 100 in the UK closed flat, while the Swiss Market Index closed up 0.7%.

The UK government is considering work-from-home directives during the Christmas and New Year periods to contain the spread of the omicron variant of COVID-19, The Telegraph reported. Other restrictions including vaccine passports are also on the table, although Cabinet members are still divided on adopting them, the publication noted.

Pfizer PFE and BioNTech BNTX said Wednesday that a booster shot of their COVID-19 vaccine neutralized the omicron variant of the disease in a laboratory study, while the companies vowed to deliver a jab against the variant, if needed, by March.

The UK will phase out the use of 2G and 3G mobile networks by 2033 in a bid to increase the security of telecoms supply chains and move towards faster mobile networks. British Digital Secretary Nadine Dorries also disclosed 50 million pounds sterling ($66.3 million) of funding for telecoms research and development projects to boost innovation in mobile network technology.

France's payroll employment, excluding the farming industry and government, rose 0.4% in the second quarter to 25.8 million jobs, following a 1.2% increase in the second quarter, data showed. On a yearly basis, payroll employment grew by 2.2%, the French National Institute of Statistics and Economic Studies said.

On the corporate front, Umicore UMI was down over 9% after it said it is partnering with Volkswagen VOW, VOW3 to produce electric vehicle battery materials in Europe. The precursor and cathode material manufactured by the joint venture will be supplied to Volkswagen's battery cell production. The new entity is expected to have an initial annual production capacity of 20 gigawatt-hours starting in 2025 for Volkswagen's plant in Salzgitter, Germany.