European Stocks Slip On Poor Data

European stocks slip on poor data

Europe's equity markets slipped Thursday on survey data indicating the region's economy continued to be battered by coronavirus fallout, despite recent vaccine-driven optimism, dealers said

London, (UrduPoint / Pakistan Point News - 3rd Dec, 2020 ) :Europe's equity markets slipped Thursday on survey data indicating the region's economy continued to be battered by coronavirus fallout, despite recent vaccine-driven optimism, dealers said.

Investors weighed Covid-19 vaccine hopes against rising infections and uncertainty surrounding a post-Brexit trade deal, OPEC oil output and a US stimulus package.

In late morning deals, London's benchmark FTSE 100 index edged down 0.1 percent, having rallied the previous day after a sliding pound pushed up shares in multinationals.

Confirmation that Britain will next week start rolling out the Pfizer-BioNTech vaccine against Covid-19 has meanwhile led to traders booking profits following big share-price gains in recent weeks on expectations of mass inoculations before 2021.

In eurozone trades Thursday, Frankfurt's DAX 30 index dipped 0.6 percent and the Paris CAC 40 shed 0.5 percent.

Oil prices slid before a crucial OPEC production gathering that starts at 1300 GMT, while the British pound clawed back some of the previous day's losses amid troubled post-Brexit deal talks between the UK and the European Union.

"A more cautious mood has descended on stock markets in Europe... after final PMI readings provided a less than stellar outlook for the region," noted analyst Chris Beauchamp at trading firm IG.

"The rash of figures confirmed the pessimistic near-term view of the eurozone economy and for the UK as well.

"Losses on stock markets are still relatively modest (because) everyone can see it will have been tough month thanks to (virus) lockdown measures bearing down on economic performance," Beauchamp added.

Data provider IHS Markit said its closely-watched composite eurozone purchasing managers' index (PMI) index fell to 45.3 points in November from 50 points in October, according to final estimates.

Britain's services PMI dropped to 47.6 from 51.4. Any reading above 50 points indicates that activity is expanding -- but a level below 50 points indicates contraction.