European shares snap five-week winning streak; Sanofi slumped on vaccine delay

by   |  VIEW 2093

European shares snap five-week winning streak; Sanofi slumped on vaccine delay

On Friday, a basket of European bourses had wrapped up the day sharply lower, winding down a withering week which had witnessed a break-off of a five-week long streak of consecutive gains, as frets over the pandemic’s fiscal fallout alongside fading prospects of a Brexit deal had heaved down a slew of European stocks from their all-time highs.

In tandem, an impasse over the latest round of talks on a much-required US stimulus, added to further strains. Besides, fanning up the flames further, European Central Bank (ECB) had forecasted a dour outlook for 2021, eventually wreaking havocs on European shares, while the regional Pan-European STOXX 600 dipped 0.8 per cent on Friday and had winded up the week 1 per cent lower, marking up the Index’s first weekly percentage decline since early-November.

European stocks post weekly percentage decline for first time in five weeks

In tandem, amid a growing number of odds, investors seemed to be bracing for a no-deal Brexit ahead of a Sunday deadline to reach an accord, while London’s FTSE 100 faltered for the first time in nine sessions.

Aside from that, shares’ prices of drugmaker Sanofi tumbled as much as 4 per cent after the company had been quoted saying that its pandemic vaccine candidate which the French pharmaceutical giant was developing in collaboration with British drugmaker GlaxoSmithKline had shown an inadequate response.

Nonetheless, a €1.8-trillion in pandemic stimulus budget unveiled by the EU Commission on Thursday had kept a lid on the downside momentum. Citing statistics, in the day’s European market closing bell, European shares finished broadly lower with Frankfurt’s DAX leading the tally of the losses, while London’s FTSE 100 shed 0.80 per cent, DAX dwindled 1.36 percent and French CAC 40 jolted 0.76 per cent.

Elsewhere in the Europe, Madrid’s IBEX 35 nosedived 1.46 per cent to 8,063.10, while Italy’s FTSE MIB muzzled 0.97 per cent to 21,702.16. Meanwhile, addressing to investors’ cynicism over a potential Brexit deal that could have prevailed a chaotic departure of Britain from the 26-membe bloc, a head of strategy at TS Lombard, Andrea Cicione said, “Both the UK and the EU have started saying that not only is a no deal outcome possible but that it’s the most likely outcome.

So, markets are spooked about it. Eventually a deal will be ironed out. If talks fail now, the two parties will come back at the start of next year”.