🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Vaccine-led rally stalls in Europe as travel shares slide

Published 11/17/2020, 03:24 AM
Updated 11/17/2020, 04:35 AM
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt
EZJ
-
DBKGn
-
BBVA
-
SABE
-
IMB
-
PFE
-
STOXX
-
SX6P
-
SXEP
-
SX7P
-
SXAP
-
SXDP
-
SXTP
-
MRNA
-

(Reuters) - European stocks eased from eight-month highs as tighter coronavirus-driven restrictions across the continent hit travel stocks, halting a broader rally that was powered by encouraging COVID-19 vaccine news.

The pan-European STOXX 600 (STOXX) slipped 0.1% in morning trading. The index closed at it highest level since Feb. 27 on Monday after positive data from drugmaker Moderna 's (O:MRNA) COVID-19 vaccine.

Earlier, Pfizer (NYSE:PFE) and partner BioNTech flagged strong progress in their COVID-19 vaccine, sparking a rally in global equities last week.

"Though the vaccine developments were incredibly positive, markets still have a bit of a 'show me the logistics' side to it," Deutsche Bank (DE:DBKGn) strategist Jim Reid wrote in a morning note.

Near-term economic outlook remains hazy as the grip of the virus grows stronger, with Sweden moving to restrict the size of public gatherings and a British medical adviser suggesting strengthening the three-tier system of restrictions when the full lockdown in England ends.

Travel stocks (SXTP) fell the most, with British airline EasyJet (L:EZJ) sliding 5% after it recorded a 1.27 billion pound ($1.68 billion) annual loss, the first in its history that also highlights the extent of the pandemic's impact on air travel.

European banks (SX7P) retreated after a more than 3% surge on Monday. BBVA (MC:BBVA) fell 4.2% after it and smaller rival Sabadell (MC:SABE) said they were in talks to create Spain's second-biggest domestic lender by assets.

Sabadell shares jumped 3.5% to become the second-biggest gainer on the STOXX 600.

Other economically sensitive sectors such as oil and gas (SXEP) and automakers (SXAP) retreated after a sharp rally in the past week as hopes of a vaccine prompted investors to bet on a faster economic recovery.

Tobacco company Imperial Brands (L:IMB) gained 3% after it forecast a rise in profit for 2021, helped by expected improvements in its e-cigarette business.

© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

Defensive sectors such as utilities (SX6P) and healthcare (SXDP) inched higher.

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.