Europe close: Shares end mixed with Brexit talks in focus
European shares finished on a mixed note on Wednesday as investors took heart from positive Covid-19 vaccine news in the US, offset by uncertainty ahead of a key meeting between the UK Prime Minister and European Commission chief, Ursula von der Leyen, to thrash out a Brexit deal.
The pan-European Stoxx 600 index rose 0.32% to 394.9 with the German Dax 0.47% stronger at 13,340.26, although the FTSE Mibtel dipped 0.38% to 21,969.59.
"[...] The usual 'Santa rally' is now just days away, and if stock markets can hang on for a while longer the final tailwind of the year may kick in," said Chris Beauchamp, chief market analyst at IG.
"Usually the second half of December is the stronger part, so if we can get some judiciously-timed stimulus headlines investors may yet be deemed to be on the 'nice' list and be granted a pre-Christmas gift as a reward for enduring a very tough year."
US regulators reported they had no issues with the Pfizer/BioNTech Covid-19 vaccine while Johnson & Johnson said it could produce late-stage trial results next month.
However, the optimism was tempered as investors eyed last-ditch talks to break the Brexit trade deal impasse. UK Prime Minister Boris Johnson is flying to Brussels today for talks with European Commission President Ursula von der Leyen.
In equity news, shares in German chemicals group Covestro pared early gains after the company on Tuesday raised its 2020 earnings forecast as activities in the fourth quarter of the current year are stronger than previously expected.
The company said it now expected core earnings to be between €1.44bn - €1.5bn, compared with previous guidance of roughly €1.2bn due to better margin development in its polyurethanes and polycarbonate units.
Howden Joinery shares were up 5% as the company upgraded its full-year profit expectations.
The trade supplier of kitchens and joinery products said it expected full-year pre-tax profit to be around 10% above the top end of current analyst forecasts of £123m - £152m.
Shares in house builder Vistry rose on news it would consider reinstating a “modest” final dividend, citing strong cash performance.
Transport operator Stagecoach saw its shares up 6% despite a plunge in full-year profits. The company’s profits fell to £5.4m in the six months to October 31 compared with £65.9m for the same period last year, while revenue fell 43 per cent to £454.6m.