Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Brexit, virus worries weigh on European shares; Sanofi down on vaccine delay

Stock MarketsDec 11, 2020 04:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

By Susan Mathew and Amal S

(Reuters) - European shares slipped on Friday, setting up to end an action-packed week on a somber note on worries over the economic impact of a resurgent COVID-19 pandemic and the fate of a Brexit trade deal as well as stalled U.S. stimulus measures.

The pan-European STOXX 600 index slid 0.8%, extending losses after a dour 2021 economic forecast from the European Central Bank had seen it end in the red on Thursday.

The index is set to break a five-week winning streak as a stalemate in talks between the European Union and Britain raised the chances of Britain's exit from the economic bloc without a trade deal.

Investors will be watching for Brexit updates with a Sunday deadline for a last ditch attempt at a deal.

"It's the fears that the talk from both sides has definitely switched to a more negative tone," said David Madden, market analyst at CMC Markets UK, adding markets still hope for some sort of a deal because stocks "aren't falling through the floor."

Drugmaker Sanofi (NASDAQ:SNY)'s 3.1% slide weighed the most, after it said its COVID-19 vaccine candidate developed with GlaxoSmithKline (NYSE:GSK) showed an insufficient immune response in clinical trials. GSK shares were trading flat.

As European bond yields dipped, banks continued their slide. Spain's lender-heavy main index fell 1.9%.

Meanwhile, European Union leaders unblocked a 1.8 trillion euro ($2.18 trillion) financial package late on Thursday to help the economy recover from the pandemic-induced recession.

But 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 sentiment on hopes of a global economic recovery. The STOXX 600 has risen 45% since lows hit in March, but it remains more than 6% down for the year.

Among other individual stocks, Rolls-Royce (OTC:RYCEY) slumped 5.3% after the engineering company downgraded this year's cash outflow forecast and warned the outlook remained challenging.

Telecom gear maker Ericsson (BS:ERICAs) fell to the bottom of the STOXX 600 after filing a U.S. lawsuit against Samsung (KS:005930) 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 dropped 2.3% and was on course for its worst day in over 10 weeks.

($1 = 0.8243 euros)

Brexit, virus worries weigh on European shares; Sanofi down on vaccine delay

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email