European Stocks Slip; Consolidating as Covid Cases Rise

European Stocks Slip; Consolidating as Covid Cases Rise  | Jan 11, 2021 08:56

European Stocks Slip; Consolidating as Covid Cases Rise

By Peter Nurse - European stock markets traded mostly lower Monday, consolidating after recent gains amid rising Covid-19 cases globally.

At 3:55 AM ET (0855 GMT), the DAX in Germany traded 0.9% lower, the CAC 40 in France fell 0.5% and the U.K.'s FTSE index dropped 0.6%.  

There were, however, significant outliers, with the STOXX Technology index hitting another all-time high, and U.K. sports gear retailer JD (NASDAQ:JD) Sports Fashion (LON:JD) rising 4.5% to an all-time high after reporting a strong Christmas trading season.

Stock exchange operator Euronext has resolved a technical issue that affected trading on futures contracts tied to the CAC 40.

Many European countries are battling a surge in Covid-19 cases following the emergence of a new highly transmissible strain of the virus, racing to vaccinate their elderly, the most vulnerable members of society.

Cases are also increasing globally, with mainland China seeing its biggest daily increase in more than five months, the country's national health authority said on Monday. This has prompted a lockdown in Shijiazhuang, the capital of the province of Hebei and the epicenter of the new outbreak.

China had recovered better than any other major economy from the Covid-19 hit, with the manufacturing sector, in particular, thriving as global consumers switched demand to (often Chinese-produced) goods from locally produced services.

Losses are likely to be limited following the solid start to 2021 as investors remain focused on the prospect for additional fiscal stimulus in the U.S. after a Democratic sweep of Congress. This remains the case even after the violent scenes on Capitol Hill last week that continue to reverberate. 

The economic data slate is largely empty Monday, while in the corporate sector, British Land (OTC:BTLCY) stock fell 1.8% after the U.K.'s largest commercial landlord reported a drop in rental collection in December, with only 46% of retail rents paid in full and on time.

Swiss healthcare giant Roche (SIX:RO) stock rose 0.4% after receiving EU approval for its influenza treatment Xofluza, and Sanofi (PA:SASY) (NASDAQ:SNY) stock rose 0.7% after agreeing to buy U.K. pharmaceutical group Kymab. 

Oil prices weakened Monday amid concerns of declining fuel demand following a jump in new Covid-19 cases in China, the world’s second-largest consumer of crude.

Still, prices remain above the $50 a barrel level, supported by Saudi Arabia's surprise pledge last week to cut output by 1 million barrels per day for two months.

U.S. crude futures traded 0.7% lower at $51.87 a barrel, while the international benchmark Brent contract fell 0.9% to $55.50. 

Elsewhere, gold futures rose 0.7% to $1,848.80/oz, while EUR/USD traded 0.2% lower at 1.2188.


Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

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.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Polski Português (Portugal) Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors. is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.