Irish shares join in Europe-wide 'relief rally' amid encouraging Omicron data   

Ryanair shares climbed 2.5% today.

Irish and other European shares joined a pre-Christmas rally as investors hailed studies that showed the rate of hospitalisations from Omicron could be lower than once feared.

The Iseq index of Irish shares, the Stoxx Europe index of the continent's 600 largest listed firms, and the Ftse-100 rose by as much as 1.2% on hopes that the studies will mean that European governments will not need to bring in new lockdowns to curtail the variant in the coming weeks.                       

The Omicron variant appears less likely to lead to hospitalisations than the Delta strain, according to preliminary data from studies. 

Pfizer's Covid-19 pill gained clearance for emergency use in the US earlier this week, delivering a more convenient treatment option for at-risk patients at a critical point in the pandemic. And AstraZeneca has said its booster shot significantly increased levels of antibodies against Omicron.

"There has been more positive news from a number of studies worldwide on the severity of Omicron which are tending to confirm suspicions that the infections from the new variant are less severe than that of Delta," said Investec.

While stocks have been eking out gains in recent days, volumes are getting thinner ahead of the Christmas holidays.

“I would classify this bounce as a relief rally, but it’s not sustainable yet,” said Alberto Tocchio, a portfolio manager at Kairos Partners. “I would not buy here and wait for some further news and studies on omicron, Biden’s fiscal plan,” he said, referring to the potential legislative delays for the president's key infrastructure spending programme.       

In Ireland, almost all leading company shares were higher. Leading the way were the shares in Paddy Power-owner Flutter, up by over 3%, on its deal-making in Italy.

Travel and hotel shares were up on the Europe-wide buying spree following the data on hospitalisations and Omicron.

Ryanair shares climbed 2.5%, ICG, which owns Irish Ferries, rose by 3%, while Dalata, which owns the Maldron and Clayton chains and is Ireland's largest hotelier, gained 1.2%. 

Additional reporting Bloomberg