Travel shares lead European declines on virus worries

European shares fell on Monday, led by travel stocks, on worries that the fast-spreading Delta variant could hamper travel demand and slow the ongoing global economic recovery. The pan-European STOXX 600 index fell 1.2% by 0708 GMT, hitting its lowest in almost two weeks. UK's FTSE 100 was down 1.3% as rising virus cases overshadowed optimism about England's reopening. Travel and leisure stocks dropped 2.3%.

European shares fell on Monday, led by travel stocks, on worries that the fast-spreading Delta variant could hamper travel demand and slow the ongoing global economic recovery.

The pan-European STOXX 600 index fell 1.2% by 0708 GMT, hitting its lowest in almost two weeks. The German DAX dropped 1.1% and France's CAC 40 declined 1.2%. UK's FTSE 100 was down 1.3% as rising virus cases overshadowed optimism about England's reopening.

Travel and leisure stocks dropped 2.3%. Britain's government said on Friday it was scrapping a planned relaxation of COVID-19 quarantine rules for travelers from France. UK-listed shares of cruise operator Carnival Plc, airlines EasyJet and British Airways-owner IAG all fell between 4% and 6.5% in early trading.

Oil majors like BP and Royal Dutch Shell fell more than 1.5%, hit by falling crude prices after OPEC+ agreed to boost output.