Europe close: Stocks end on mixed note, some analysts cautious
By Alexander Bueso
Date: Wednesday 02 Dec 2020
(Sharecast News) - European shares finished on a mixed note on Wednesday, although news that Britain had approved a Covid-19 vaccine and that a bipartisan group of US congressmen was pushing for a $908m fiscal stimulus package helped stocks reverse early losses.
The pan-European Stoxx 600 index dipped 0.05% to 391.69, but the Cac-40 managed to fully reverse course and was up by 0.02% at 5,583.01.
Germany's Dax meanwhile fell 0.52% to 13,313.24, but the Ibex 35 also ended on the up, advancing 0.98% to 8,220.8.
Just as during the previous session, Basic Resources shares topped gainers on the Stoxx 600, climbing by 1.61%, alongside a gain of 1.33% for a gauge of bank stocks and an advance of 1.24% for Oil&Gas stocks.
"As the UK's vaccine news shows, things are moving in the right direction, which should continue to support risk, but with the news very much in the price it is a question of where the next big story comes from. Otherwise, the chances of a Santa Rally that can build on Novembers bounce seems to be rather diminished," said iG chief market analyst Chris Beauchamp.
Earlier, the UK government said it had approved the Pfizer-BioNTech vaccine, with the first immunisations rolling out from next week, although the response from investors was muted.
Weighing on risk appetite early in the session, the EU's top Brexit negotiator, Michel Barnier, indicated that a no-deal scenario was likely.
In corporate news, shares in G4S jumped 8.25% after Canada's GardaWorld lifted its offer for the UK outsourcer to 235p a share, valuing it at £3.68bn.
Shares in lab instrument maker Tecan Group jumped 8% after the company raised earnings forecasts.
Workspace provider IWG on the other hand was under the cosh after saying it would raise £300m in a convertible bond issue to help pay for a string of planned acquisitions at attractive prices.
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