BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets closed weak on Friday amid worries over surging coronavirus cases and likelihood of tighter restrictions, uncertainty over Brexit and U.S. stimulus deal, and fresh tensions between the U.S. and China.
There was more positive news on the vaccine front with Moderna getting the FDA nod for emergency use of its coronavirus vaccine, but investors largely stayed cautious and refrained from making significant moves.
In Brexit news, Michel Barnier, the EU's chief negotiator said in the European parliament that it was 'the moment of truth' for the two sides to come to an agreement. He said there was a chance of getting an agreement but the path to such an agreement was very narrow.
European Commission President Ursula von der Leyen said bridging 'big differences', particularly on fishing rights, would be 'very challenging' while Prime Minister Boris Johnson said discussions were in a 'serious situation'. Johnson signaled that a no deal continued to be a 'very likely' outcome.
The pan European Stoxx 600 slid 0.35%. The U.K.'s FTSE 100 declined 0.33%, Germany's DAX shed 0.27% and France's CAC 40 ended down 0.39%. Switzerland's SMI edged down 0.16%.
Among other markets in Europe, Austria, Belgium, Poland, Portugal, Russia and Spain closed weak.
Denmark, Greece, Iceland and Turkey ended higher, while Czech Republic, Finland, Ireland, Netherlands and Sweden ended flat.
In the UK market, Land Securities, down more than 6%, was the biggest loser in the FTSE 100 index. British Land slid 4.4% and Flutter Entertainment lost 3.8%.
Lloyds Banking Group, JD Sports Fashion, Natwest Group, Johnson Matthey, Aveva, BT Group, Morrison Supermarkets, IAG, Associate British Foods and Segro also closed sharply lower.
Among the gainers, Hikma Pharmaceuticals moved up 4.6%, CRH rallied 3.3% and Bunzl surged up 2.7%. Rentokil, Experian, Just Eat Takeaway, Avast, Evraz and Ashtead also posted strong gains.
In France, Saint Gobain shed more than 4%. WorldLine, Kering, ArcelorMittal, Unibail Rodamco, Credit Agricole, Technip, Airbus, Safran, BNP Paribas and Renault lost 1 to 2.5%.
On the other hand, Orange, Vivendi, Teleperformance, Dassault Systemes, Sanofi and STMicroElectronics posted notable gains.
In the German market, Munich RE, Adidas, Merck and Deutsche Wohnen ended lower by 1.5 to 2%, while Thyssenkrupp, Continental, Siemens and Henkel rose sharply.
In economic releases, the euro area current account surplus rose to EUR 27 billion in October from EUR 25 billion in the previous month, driven by trade in goods and services, data from the European Central Bank showed.
The surplus on goods trade advanced to EUR 35 billion from EUR 33 billion a month ago and that in services to EUR 9 billion from EUR 7 billion.
The U.K. retail sales volume dropped 3.8% month-on-month in November, in contrast to the 1.3% rise logged a month ago, a government report revealed. This was the first decline in seven months and was smaller than the economists' forecast of -4.2%.
Separately, market research firm GfK said a gauge of confidence among British consumers jumped by the most in eight years in December, boosted by the rollout of the first covid-19 vaccine program in the country.
The closely-watched German IFO business climate index climbed to 92.1 in December from an upwardly revised 90.9 points in the previous month.
On the vaccine front, an FDA advisory panel has given a positive recommendation to Moderna's vaccine candidate. Additionally, Johnson & Johnson said the first late-stage trial for its vaccine candidate is now fully enrolled, with the healthcare giant expecting interim data by late January.
Copyright RTT News/dpa-AFX