European stocks rose on Wednesday, propelled higher by oil companies and drugmakers, although shares of AstraZeneca PLC fell after temporarily halting testing of its COVID-19 candidate.
US equity futures also indicated a rebound later, with tech stocks poised to lead the gains.
rose 0.7% after falling just over 1% on Tuesday. The index has fallen seven of the last nine trading sessions. Elsewhere, the German DAX DAX,
increased by 0.8%, the French CAC 40 PX1,
up 0.6% and the FTSE 100 UKX,
gained almost 1%.
UK equities broke away from the weakness of the pound GBPUSD,
which fell 0.4% against the dollar after the UK told the EU it was preparing to exit the bloc without any deal. A weak pound can benefit UK companies that earn income from overseas as it makes their products more competitive. Stock futures have indicated a stronger potential start for Wall Street, with Nasdaq-100 NQ00 futures,
up 1.5%. Dow YM00,
et S&P 500 futures ES00,
increased by about 0.5% each.
Le Nasdaq Composite COMP,
fell 4.1% on Tuesday, as electric carmaker Tesla suffered its biggest drop in a day. Dow DJIA industrialists,
fell 632 points, or 2.3%, and the S&P 500 SPX,
“There is not yet a clear signal that the index has passed an inflection point, although there remains the possibility that the pandemic-fueled rise in recent months will subside as the world returns to kind of normal, ”said Richard Hunter, head of markets at Interactive Investor, in a note to clients.
Actions d’AstraZeneca PLC AZN,
fell 1% after the drugmaker suspended late-stage testing of its COVID-10 vaccine candidate after a patient fell ill, likely due to a reaction to treatment.
“This is a routine action that should occur whenever there is a potentially unexplained disease in any of the trials, while it is under investigation, ensuring that we maintain integrity of testing, ”the company said in a statement Tuesday evening.
“These setbacks are not unusual in testing, and standard review processes trigger pauses to investigate the data,” Stephen Innes, chief global market strategist at AxiCorp, in a note to clients.
Other drugmakers fared better, with shares of Roche Holding AG ROG,
up 0.8% and GlaxoSmithKline PLC GSK,
Gains by major oil companies supported major European indices, with shares of Royal Dutch Shell PLC RDSA,
up 1.8%, BP PLC BP,
up 1.7% and Total SE FP,
increased by 1%.
Oil prices fell to their lowest level since June on Tuesday, as the continued rise in global pandemic cases would reduce demand. CL.1 gross futures,
were slightly higher on Wednesday.