Portfolio

Europe open: Shares in limbo as investors eye US stimulus, Brexit talks

By Frank Prenesti

Date: Thursday 03 Dec 2020

(Sharecast News) - European markets started Thursday's session in torpor as investors struggled to find any incentive.

The pan-European Stoxx 600 index was flat despite a record finish on Wall Street with some hope of US fiscal stimulus package offset by a worrying rise in the number of Covid-19 cases. US futures were lower on Thursday.

The Brexit soap opera over Britain's fishing industry also proved a drag on broader sentiment.

"We are also starting to see signs of strain amongst EU leaders as UK/EU trade talks move into the final strait. France is starting to sabre rattle saying it could veto a deal if it doesn't like the terms, a move that appears to be designed to exert pressure on Michel Barnier and EU negotiators not to give too much away, when it comes to fishing," said CMC Markets analyst Michael Hewson.

"It could also be argued that the rise in tensions suggests that a deal could well be getting closer, and it is this urgency that is creating a concern about any new compromises that might be needed to get a deal across the line."

UK shares were still positive after the government fast-tracked approval of the Pfizer/BioNTech Covid-19 vaccine.

The news lifted expectations of a recovery in demand for airline travel, helping Rolls-Royce make gains.

Shares in UK supermarket giant Sainsbury's rose as the company said it would repay £410m in business rate relief and target dividend payments over debt reduction.

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