BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks drifted lower on Tuesday, coming off multi-month highs touched in the previous session, as worries about tighter coronavirus restrictions across the continent prompted investors to lighten commitments.
The continued impasse over a fiscal stimulus package in the U.S. also kept investors worried as global Covid-19 cases topped 55 million.
Conflicting reports about the progress in Brexit negotiations, reports about Hungary and Poland blocking the EU's €750 billion coronavirus stimulus package hurt as well.
According to reports, Sweden is set to restrict the size of public gatherings following a spike in new coronavirus cases.
A British medical adviser said that the three-tier system may need to be 'strengthened' to get the country 'through the winter.'
Markets across Europe had surged higher on Monday on vaccine hopes after Moderna announced that its experimental Covid-19 vaccine proved 94.5% effective in preventing the infection.
The pan European Stoxx 600 slid 0.24% today. The U.K.'s FTSE 100 slipped 0.87%, Germany's DAX edged down 0.04% and Switzerland's SMI closed 0.2% down, while France's CAC 40 turned positive after a long spell in the red to end 0.21% up. A drop in new coronavirus cases in France helped French stocks to pare early losses.
Among other markets in Europe, Denmark, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain and Turkey closed weak.
Austria, Belgium, Finland, Iceland and Sweden ended higher.
In the UK market, Antofagasta, Vodafone, Hikma Pharmaceuticals, Experian, IAG, HSBC Holdings, JD Sports Fashion, AstraZeneca Pharma, GlaxoSmithKline, Smith Ds, Reckitt Benckiser and GVC Holdings lost 2 to 4.5%.
Among the gainers in the FTSE 100 index, Intermediate Capital Group surged up nearly 8%. Imperial Brands spurted 7.3% after forecasting a return to profit growth this fiscal. Taylor Wimpey rallied 5.8% and Barrat Developments ended stronger by 3.2%.
Homeserve Plc shares climbed nearly 2.5% after the company reported a 16% jump in first-half adjusted profit. The company also raised its interim dividend by 7%.
In the German market, Thyssenkrupp, E.ON, Henkel, SAP, Lufthansa, Fresenius Medical Care and Beiersdorf lost 1 to 2.5%.
On the other hand, Wirecard climbed more than 6.5% and Allianz surged up nearly 2%, while Daimler, Munich RE and BASF added 1 to 1.3%.
In France, Atos, ArcelorMittal, Dassault Systemes, Engie and Pernod Ricard ended notably lower, while Unibail Rodamco, Safran, Carrefour, Michelin and Bouygues closed sharply higher.
Bank of England Governor Andrew Bailey, speaking at the CityUK National Conference today, said that regulators and financial service firms must work together so businesses are able to get the finance they need to invest for the future.
Heightened uncertainty about the future tends to have negative effect on investment. Both Covid and the process of setting the future relationship with the EU have increased uncertainty, he noted.
'If we can now see some light at the end of the tunnel, we need to focus more on important questions about how our economies will look in the future, how we want them to look, what will be the legacy of Covid, and what we can do to support and prioritise any necessary more structural changes,' said Bailey.
'At the Bank, we are emphasising work on the supply of finance for productive investment, which is important for long-term growth and for financial stability,' the governor added.
Copyright RTT News/dpa-AFX