Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UPDATE 2-European shares break 5-week winning streak; Sanofi down on vaccine delay

Published 11/12/2020, 10:32
Updated 11/12/2020, 18:12
© Reuters.

© Reuters.

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Sanofi falls 4% as COVID-19 vaccine candidate delayed
* STOXX 600 down 1% on the week
* Ericsson files U.S. lawsuit against Samsung
* Rolls Royce slumps, downgrades cash outflow forecast
* Sunday deadline for Brexit trade deal eyed

(Updates to close)
By Susan Mathew
Dec 11 (Reuters) - European shares slipped on Friday, ending
an action-packed week on a somber note on worries over the
economic impact of the resurgent COVID-19 pandemic and the fate
of a Brexit trade deal.
The pan-European STOXX 600 index .STOXX slid 0.8%,
extending losses after a dour 2021 economic forecast from the
European Central Bank pushed it into the red on
Thursday. The index broke a five-week winning streak, falling 1%, as
stalemate in talks between the European Union and Britain raised
chances of Britain exiting from the bloc without a trade deal.
Investors will be watching for Brexit updates with a Sunday
deadline for a last ditch attempt at a deal to govern around $1
trillion in annual trade, currently free from tariffs and
quotas. "Both the UK and the EU have started saying that not only is
a no deal outcome possible but that it's the most likely
outcome. So markets are spooked about it," said Andrea Cicione,
head of strategy at TS Lombard.
"Eventually a deal will be ironed out. If talks fail now,
the two parties will come back at the start of next year."
As European bond yields dipped, banks .SX7P continued
their slide. Spain's lender-heavy main index .IBEX dropped
1.5%, while London's FTSE 100 .FTSE fell for the first time in
nine sessions. .L GVD/EUR
Drugmaker Sanofi's SASY.PA 4% slide weighed the most,
after it said its COVID-19 vaccine candidate developed with
GlaxoSmithKline GSK.L showed an insufficient immune response
in clinical trials. GSK shares were trading 0.3% lower.
Meanwhile, as EU leaders unblocked a 1.8 trillion euro
($2.18 trillion) financial package late on Thursday, in the
United States, fiscal stimulus appeared unlikely after Democrat
House Speaker Nancy Pelosi suggested that wrangling over a
spending package could drag on through Christmas. A raft of stimulus measures since the onset of the pandemic
has lifted hopes of a global economic recovery. The STOXX 600
has risen around 45% from lows hit in March, but still remains
down more than 6% for the year.
Among other individual stocks, Rolls-Royce RR.L slumped
7.9% after it downgraded this year's cash outflow forecast and
warned the outlook remained challenging. Telecom gear maker Ericsson ERICb.ST slid after filing a
U.S. lawsuit against Samsung 005930.KS for alleged breaches in
negotiations for royalty payments and to license patents.
This could impact Ericsson's operating income by 1 billion
Swedish crowns ($118.70 million) to 1.5 billion per quarter
beginning in the first quarter 2021, the company said.
Europe's telecoms sector .SXKP dropped 2.8%, posting its
worst day in over 10 weeks.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.