Europe open: Shares lower on rising coronavirus restrictions

European stocks opened weaker on Wednesday morning following a mixed prior session as the continuing spread of the coronavirus and renewed restrictions continued to weigh on investors.

The pan-European Stoxx 600 index was down 0.33% with all major bourses in the red. US stocks rose overnight with the S&P 500 recovering to 3,440 and the Nasdaq clearing 11,500 again.

In the US, Democrats and Republicans claimed to be making progress on fiscal stimulus talks, although chances of a deal before the Presidential election still looked slim. However, Senate Majority Leader Mitch McConnell warned the White House against a bigger Democrat-sponsored deal before November 3.

“The spread of the virus in Europe and the response of governments is a clear weight on the market, whilst US stimulus and election risks are to the fore. We’re also in the midst of an earnings season. And then we can throw in Brexit in to the mix – lots of reasons to chop sideways for a while longer,” said Markets.com analyst Neil Wilson.

London stocks edged lower as investors mulled the latest UK inflation and borrowing figures. The government borrowed £36.1bn in September, taking borrowing in the first six months of the financial year to a record £208.5bn.

Separate data showed that annual consumer price inflation in September rose to 0.5% from 0.2% in August, when it had been cut by the government’s "Eat out to Help Out" subsidised meal scheme to help the restaurant sector. The figure was in line with analysts' expectations.

In equity markets, shares in Ericsson rose after the Swedish telecommunications equipment maker reiterated full-year targets and reported stronger-than-expected profit.

Randstad shares climbed 8% after the Dutch recruitment company said third-quarter net profit fell, but revenue saw a partial recovery from a pandemic hit.

Nestle shares gained despite the company reporting lower sales for the first nine months of the year. Full-year guidance was lifted as demand for the Swiss food giant’s at-home products remained strong.

Shares of Centamin plunged 18% after the miner reported lower gold production and sales for the third quarter.