European ended mostly lower on Tuesday as worries about the economic impact of surging coronavirus cases and tighter lockdown restrictions in several places across the continent weighed on stocks.
However, the downside was not sharp in the major markets as hopes of a large stimulus in the U.S., the rollout of coronavirus vaccines in several countries, and expectations of fairly strong results from top companies prompted investors to refrain from engaging in any big selling.
Markets were also reacting to a slew of economic data from the region, besides digesting the remarks of Janet Yellen, the U.S. Treasury Secretary nominee, before the Senate Finance Committee.
In prepared remarks, Yellen called for additional stimulus to address the impact of the ongoing coronavirus pandemic, arguing the government needs to "act big."
Yellen acknowledged the mounting national debt facing the incoming administration but claimed the benefits of another relief package will far outweigh the costs.
The pan European Stoxx 600 slid 0.19%. The U.K.'s FTSE 100 edged down 0.11%, Germany's DAX ended lower by 0.24% and France's CAC 40 declined 0.33%, while Switzerland's SMI ended 0.11% down.
Among other markets in Europe, Belgium, Czech Republic, Finland, Poland, Russia, Spain and Sweden closed weak.
Austria, Denmark, Greece, Iceland, Norway, Portugal and Turkey ended higher, while Ireland and Netherlands ended flat.
In the UK market, Entain plunged nearly 12% after MGM Resorts said it had abandoned a takeover attempt of the firm.
WPP, Barclays Group, Standard Chartered, Flutter Entertainment, JD Sports Fashion, Kingfisher, Natwest Group and Informa lost 2 to 4%.
Among the gainers, Smith & Nephew moved up nearly 3.5%, Hargreaves Lansdown advanced 2.8%, HSBC Holdings surged up 2.1% and Pearson gained 1.85%, while Scottish Mortgage, Avast and IHG gained about 1.5% each.
In France, ArcelorMittal, Publicis Groupe, Peugeot, Kering, Carrefour, Hermes International, Societe Generale, Credit Agricole and Technip lost 2 to 5%.
Sanofi shares gained nearly 2% after the company said that U.K.'s Medicines and Healthcare Products Regulatory Agency has granted a Promising Innovative Medicine to nirsevimab.
Danone gained more than 2.5%. Veolia, Accor and Sodexo gained 1 to 2%.
In the German market, Deutsche Bank, Adidas, Thyssenkrupp, Daimler, BMW, Infineon Technologies and BASF lost 1 to 4%, while Lufthansa, MTU Aero Engines, Fresenius, Fresenius Medical Care, Siemens, Volkswagen and RWE ended notably higher.
In economic news, data published by the European Automobile Manufacturers' Association, or ACEA, showed Europe's new car registrations continued to fall in December, falling 3.3% on a yearly basis. However, that was slower than the 12% fall logged in November.
Sales in Italy declined 14.9% and that in France slid 11.8%. Meanwhile, Germany registered a robust growth of 9.9% and Spain's sales remained stable.
Eurozone's construction output rose by 1.4% month-on-month in November, after remaining unchanged in October, data form Eurostat showed. In September, output dropped 2.7%.
Final data from Destatis showed Germany's consumer price index decreased 0.3% year-on-year in December, same as seen in November. On a monthly basis, consumer prices rose 0.5% in December, as initially estimated.
The euro area current account surplus fell to EUR 25 billion in November from EUR 26 billion in October, the European Central Bank reported. The surplus totaled EUR 24 billion in the same period last year.
Survey data from the ZEW - Leibniz Centre for European Economic Research showed the Zew Indicator of Economic Sentiment in Germany climbed 6.8 points to 61.8 in January. The reading was above the expected level of 60.0. The current situation index climbed slightly to -66.4 from -66.5 in December. The expected level was -68.5.
Switzerland's producer and import prices decreased 2.3% year-on-year in December, data from the Federal Statistical Office showed on Tuesday. The producer price index decreased 1.2% annually in December and import prices decreased 4.5%. On a monthly basis, producer and import prices rose 0.5% in December.
For comments and feedback contact: editorial@rttnews.com
