Europe Markets: European stocks slip amid coronavirus vaccine doubts

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European stock markets struggled Wednesday, triggered by concerns that arose during Wall Street’s session over a promising coronavirus vaccine. Elsewhere, earnings news lifted shares of Marks & Spencer Group PLC and Experian PLC.

The Stoxx Europe 600 index SXXP, +0.10% was flat at 339.52, after a 0.6% drop on Tuesday. The German DAX DAX, +0.03% slipped 0.1% and the French CAC 40 index PX1, -0.38% fell 0.3%.

Global equity gains this week have been driven by optimism over Moderna Inc.’s MRNA, -10.41% MRNA, -10.41% vaccine candidate. The Dow DJIA, -1.58% fell nearly 400 points on Tuesday after a report giving a more sober view of phase-one results of the potential vaccine, though Wall Street hinted at a rebound, with Dow futures YM00, +0.94% up 128 points Wednesday.

As a result, European equities were struggling and Asian equities closed mostly lower.

“It seemed as if equity traders decided to pare back their long positions as there was an absence of fresh positive news. The overarching theme that governments are easing up on their lockdown restrictions is still relevant,” said David Madden, market analyst at CMC Markets, in a note to clients.

Economic data revealed U.K. consumer prices slowing to 0.8% in April from 1.5% in March, slightly weaker than the 0.9% increase forecast in a FactSet-compiled economist poll.

Read:The fun stuff is getting more expensive during the pandemic

Among stocks on the move, shares of Norwegian Air Shuttle ASA NAS, -26.72% slumped 31% after the struggling airline said it had secured a $271 million (2.7 billion Norwegian krone) state-backed loan from the government.

“Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues”, said CEO Jacob Schram, in a statement. Shares of the airline have collapsed 93% this year so far due to the pandemic.

On the upside, shares of Experian PLC EXPN, +6.89% surged 7.5% after reporting strong full-year results and little impact from the pandemic, and the company kept its dividend unchanged.

Marks & Spencer Group PLC MKS, +5.03% rose 2.9% after the retailer reported a 21% decline in full year profits for the year, led by tumbling clothing sales. But investors responded positively to comments on its restructuring plan, with more cost savings planned and a focus on its venture with online supermarket Ocado Group PLC OCDO, +1.43% .

Shares of Rolls-Royce Holdings PLC RR, -1.64% fell 2.7% after the U.K. aircraft-engine maker announced it will cut 9,000 jobs as part of a restructuring plan to cope with reduce demand brought about by the pandemic.

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