European stocks edged lower Tuesday, as traders took pause after a rally on signs a second coronavirus vaccine works effectively.
Up 1.2% on Monday after Moderna said its vaccine was 94.5% effective, the Stoxx Europe 600
edged 0.1% lower, and the German DAX
French CAC 40
and U.K. FTSE 100
also saw muted actions.
While the Moderna vaccine news was a welcome development — particularly, as Dr. Anthony Fauci said, because no one who received it got a severe case — the current news is still worrisome. Hospitalizations in the U.S. reached a fresh record on Monday, according to the COVID tracking project, while California and New Jersey were among the localities tightening rules.
After markets closed, Federal Reserve Vice Chair Richard Clarida said further monetary and fiscal support for the economy would likely be needed, which were similar to remarks Chair Jerome Powell made last week. “We believe these comments are consistent with our expectation of the Fed eventually lengthening the maturity composition of its asset purchases, most likely at the December FOMC meeting,” said Lewis Alexander, US Chief Economist at Nomura.
rose 5% — extending Monday’s 25% surge — after confirming talks to be purchased by BBVA, just hours after the larger Spanish bank reached a deal to sell its U.S. operations to PNC Financial Services. BBVA
shares slipped 3% after jumping 15% on Monday.
Analysts at Jefferies said buying Sabadell would give BBVA a broader footprint with small-to-medium sized enterprises and strong market share across Spanish regions.
shares dropped 8% after launching a €2 billion stock sale to fund its acquisition of Bombardier Transportation.