Europe Shares Dip; FTSE 100 Outperforms on Vaccine Approval

European shares slipped on Wednesday as investors took stock following a near 14 rally last month, while shares in BioNTech surged after UK became the first country to approve its COVID19 vaccine developed with Pfizer.

Londons bluechip index outperformed regional peers, up 0.1 after Britain said the vaccine will be rolled out from next week, and as the pound slid on Brexit trade deal uncertainty.

As vaccines get approved and rolled out, the outlook for the economy should improve, said Simona Gambarini, markets economist at Capital Economics.

The FTSE 100 has been inching towards prepandemic levels, having recovered 60 from March lows.

BioNtechs Frankfurtlisted shares jumped 7.5, compared with a 0.5 fall for Germanys benchmark DAX index. Data showing a higherthanexpected rebound in retail sales in Europes largest economy in October did little to cheer investors.

The panEuropean STOXX 600 index was down 0.3, with auto stocks leading declines as carmaker Volkswagen slipped 2.1 amid uncertainty about top management.

The moves come against the backdrop of a few weeks of very sharp rallies in European markets on the vaccine, so its not unusual that there will be days when the rally moderates slightly, Gambarini said.

I certainly dont think this will be the beginning of a correction, as more positive news will probably be coming our way regarding the vaccines.

Stimulus developments were also on the radar after the New York Times reported that U.S. President elect Joe…

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