European stocks edged down on Tuesday, losing momentum after a key coronavirus trial was paused as traders waited for profits from some of the world’s biggest banks.
Up 0.7% on Monday, the Stoxx Europe 600 SXXP,
weakened by 0.5%.
French CAC 40 PX1,
et UK FTSE 100 UKX,
also sagged at the start of the action. US SPX Equity,
blew up on small news on Monday during a light Columbus Day holiday, with the high tech Nasdaq Composite COMP,
rallying 2.6% at its third highest close in history. But the future ES00s,
were inferior to Johnson & Johnson JNJ,
Monday night, suspended its trial of a coronavirus vaccine after unexplained illness. It’s not uncommon for drugmakers to suspend trials in this fashion, and so far, the break is not the most serious clinical hold.
The third quarter earnings season begins Tuesday with the results of JPMorgan Chase JPM,
and Citigroup C,
as well as Johnson & Johnson.
Thursday, meanwhile, is the UK’s self-imposed date to strike a trade deal with the European Union. The current arrangement lasts until the end of the year. Data from the UK showed the unemployment rate rose to 4.5% in the three months ending in August, which was higher than expected but masks what is expected to be a bigger jump once the holiday program expiring at the end of October.
Actions in motion, MorphoSys MOR,
shares fell 9% as the double-listed biopharmaceutical said it sold a convertible bond for € 325 million.
shares fell 8% on the second day of heavy losses for the struggling engine maker after nearly doubling in value last week.
Un client Rolls-Royce, Airbus AIR,
fell 3% after a revision to the underweighting of JPMorgan Cazenove. The broker cited a more cautious view on air travel and airline profitability, which led it to slash its outlook on deliveries by 10% next year.
Shares rose 5% after agreeing to sell his 50% stake in two waste energy companies for £ 995million to an infrastructure fund managed by First Sentier Investors.