European stocks edged lower Tuesday, losing momentum after the pause of a key coronavirus trial as traders waited for earnings from some of the world’s leading banks.
Up 0.7% on Monday, the Stoxx Europe 600
weakened by 0.5%.
blasted higher Monday on little news during a light Columbus Day holiday, with the tech-heavy Nasdaq Composite
rallying 2.6% to its third-highest close in history. But futures
were lower as Johnson & Johnson
on Monday night paused its trial of a coronavirus vaccine after an unexplained illness. It’s not uncommon for drugmakers to pause trials in this way, and so far the pause is not the more serious clinical hold.
Thursday, meanwhile, is the U.K.’s self-imposed date to reach a trade agreement with the European Union. The current arrangement lasts until the end of the year. Data from the U.K. showed the unemployment rate rose to 4.5% in the three months ending August, which was higher than expected but masks what is expected to be a bigger jump once the furlough program expires at the end of October.
Of stocks on the move, MorphoSys
shares slumped 9% as the dual-listed biopharmaceutical said it’s selling a €325 million convertible bond.
shares dropped 8%, the second day of sharp losses for the troubled engine maker after nearly doubling in value last week.
A Rolls-Royce customer, Airbus
dropped 3% after a downgrade to underweight from hold at JPMorgan Cazenove. The broker cited a more cautious view on air travel and airline profitability, which led it to reduce its view on deliveries next year by 10%.
shares rose 5% after agreeing to sell its 50% share in two energy-from-waste ventures for £995 million to an infrastructure fund managed by First Sentier Investors.