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* STOXX down 0.6%, slips 0.3% on the week
* U.S. jobs growth misses estimates by big margin
* Dassault soars on France-UAE Rafale deal
* Orphan Biovitrum plunges
Dec 3 (Reuters) - European shares fell on Friday, hitting
session lows after a downturn in U.S. stocks on a tech slide and
fears around the Omicron coronavirus variant hitting economic
The pan-European STOXX 600 erased morning gains to
close down 0.6% after swinging between losses and gains all week
on worries over the potential impact of the newly detected
variant, and the U.S. Federal Reserve's recent hawkish turn.
U.S. jobs growth data disappointed, but that fuelled bets
that the Fed may consider pushing tightening the interest rate.
But Wall Street declined as tech heavy-weights slipped.
"The next couple of weeks will remain volatile as the focus
falls on the latest (U.S.) inflation report, the December 15th
FOMC meeting, and further clarity on the impact with the Omicron
variant," said Edward Moya, senior market analyst at Oanda.
Data this week showed inflation in Europe surged, with
Germany's hitting highest in decades. But the European Central
bank has maintained its 'transitory' inflation stance. The ECB
may set policy for a relatively short period at this month's
meeting given heightened uncertainty, President Christine
Lagarde told Reuters.
IHS Markit's survey showed euro zone business activity
accelerated last month, but the bounce may be temporary as
demand growth weakened and fears about the Omicron variant put a
dent in optimism.
Basic resources sector lost the most in Europe on
Friday, down 2.5% as copper and iron ore prices eased, while
tech stocks tracked U.S. peers lower.
The day's moves pushed STOXX 600 into the red for the week,
down 0.3%. But London's FTSE 100, outperformed, up 1.1%
on the week, for its best such gain since mid-October.
Oil stocks rose as crude prices climbed after OPEC+ said it
was poised to act if demand weakens, and was the only sector
in the black for the day.
Among individual stocks, Dassault Aviation surged
6.5% to the top of the STOXX 600 after France sealed a deal for
80 Rafale warplanes with the United Arab Emirates - the largest
order ever for the warplane.
Gaming company Evolution AB also rose 6.5% on a
Swedish Orphan Biovitrum (Sobi) plunged 24% after
U.S. private equity firm Advent International and Singapore's
sovereign wealth fund said they were withdrawing their bid for
(Reporting by Anisha Sircar in Bengaluru; Editing by Arun
Koyyur, Shinjini Ganguli and Shailesh Kuber)