Christmas holidays dampen trading volumes Markets in Germany, Italy, Switzerland, Spain closed STOXX 600 marks 2% weekly rise Dec 24 (Reuters) - European shares closed lower in light holiday trading on Friday, following a recent rally in global shares on signs the Omicron coronavirus variant may not derail global economic recovery. The pan-European STOXX 600 index (.STOXX) slipped 0.1% to 483.01 in a shortened trading session ahead of Christmas. The benchmark has added 1.9% this week. London"s FTSE 100 (.FTSE) closed flat, while France"s CAC 40 (.FCHI) ended 0.3% lower. Stock markets in several countries including Germany, Italy, Spain, Switzerland and the U.S. are closed on Friday for Christmas. Most Asian markets edged higher and the S&P 500 closed at a record high overnight on positive economic data and as some studies suggested the Omicron variant carries a lower risk of hospitalisation. read more "The European market is moving in tight ranges ... due to light holiday trading and also driven by fears of possible restrictions and lockdowns," said Raed Alkhedr, chief market analyst at Equiti Group. Italy on Thursday tightened restrictions, including banning all public New Year"s Eve celebrations as daily COVID-19 infections hit a record high. read more The STOXX 600 is entering the holiday period on a quiet note after rallying 21% so far this year. Though 2021 was marked by accommodative policies and positive corporate earnings, supply bottlenecks, inflationary pressures and a new COVID-19 variant threaten growth and recovery into 2022. "Santa Claus isn"t starting a year end cheer-leading party in equity markets, but rather evoking a "Santa pause" after this year"s bull run," Vishnu Varathan, head of economics and strategy at Mizuho Bank, said.