European shares pulled back from record highs on Thursday as a surge in new
coronavirus cases in China surprised investors who were hoping that the outbreak had peaked.
The pan-European
STOXX 600 index fell 0.4 per cent by 0803 GMT. The index had notched new highs in the last two sessions on optimism over what appeared to be a decline in new cases of infection in China.
But a jump in new cases after China deployed a new diagnostic method and a record rise in the death toll swiftly subdued risk appetite.
European sectors with heavy exposure to China, such as basic resources and automobile stocks fell 0.9 per cent and 1.1 per cent, respectively.