👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

UPDATE 2-European shares move little as focus turns to economic damage from COVID

Published 26/11/2020, 10:53
© Reuters.
FCHI
-
DE40
-
FTMC
-
STOXX
-
SX8P
-
SXEP
-
SXAP
-
SXDP
-
AMGO
-

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* UK to face tough post-lockdown restrictions
* British pubs cut jobs as losses widen
* French, German consumer confidence fall in November
* Aviva plans to cut 2020 dividend

(Updates to close)
By Shriya Ramakrishnan and Shashank Nayar
Nov 26 (Reuters) - European shares moved little on Thursday
as an extension of coronavirus restrictions in Germany and a
grim growth forecast for the United Kingdom brought the focus
back to the near-term economic damage caused by the COVID-19
pandemic.
The pan-European STOXX 600 .STOXX index ended down 0.1%,
with gains in tech .SX8P and healthcare .SXDP offset by
declines in automobile .SXAP and energy .SXEP shares.
A second wave of coronavirus infections coupled with rising
COVID-19 related deaths continues to sweep across Europe,
prompting Germany, France and the United Kingdom to once again
impose tough curbs, dealing a heavy blow to business activity as
restaurants, gyms and shops remained closed.
"While it is still too early to say if the investor optimism
is hurt as the wider market is still in an uptrend, there are
plenty of negative headlines out there for investors to wait and
think of the near-term effects," said Connor Campbell, a
financial analyst at Spreadex.
The benchmark STOXX 600 index is however still on course for
its best month on record and market participants expect European
equities to touch record highs next year, following promising
vaccine trial results from three major drugmakers. British shares were the worst hit with the benchmark FTSE
100 index .FTSE down 0.4% after health minister Matt Hancock
announced that several parts of England will be forced to live
under the toughest category of COVID-19 restrictions when a
national lockdown ends on Dec. 2. Britain's domestically focused mid-cap index .FTMC dropped
0.9% after finance minister Rishi Sunak said that the record
public borrowings were not sustainable, following his warning on
Wednesday that the economy was on course to shrink by 11.3% this
year. Chancellor Angela Merkel said that Germany will face
restrictions on public life for the foreseeable
future. Germany's blue-chip DAX .GDAXI ended flat while France's
benchmark CAC 40 .FCHI erased gains to end 0.1% lower after a
survey showed consumer confidence in the country fell to a
two-year low in November. In company news, British insurer Aviva AV.L dropped 0.2%
after saying it expects to pay a total 2020 dividend that is a
third less than before the coronavirus outbreak. British pub operators Mitchells & Butlers MAB.L and
Fuller, Smith & Turner FSTA.L fell 0.7% and 5.4% after they
announced around 1,650 job cuts as the hospitality industry
reels from new lockdowns.

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.