European stocks stumble in choppy trade

LONDON: Europe's major stock markets sank Thursday, bucking gains in Asia, as investors remain torn between economic optimism and ongoing coronavirus turmoil, with inflation fears also casting a shadow.

London, Paris and Frankfurt stocks each declined by 0.2 percent, as dealers dwelled on worries about rising Covid-19 infections and vaccine struggles across much of Europe.

Oil prices resumed falls as a giant container ship remained stuck in the Suez Canal, blocking one of the world's busiest shipping routes.

Crude had rebounded by almost six percent on Wednesday in response the Suez news, after slumping by a similar proportion the previous day.

"Europe is trading broadly lower, extending losses for a second consecutive session as investors keep a close eye on the developing Covid situation," said OANDA analyst Sophie Griffiths.

"The major economies in Europe such as Germany, France, Italy and the Netherlands have all taken steps to tighten pandemic restrictions to combat rising Covid cases.

"Simultaneously, the vaccine rollout in the region has been particularly sluggish and marred by problems and chaos," she added.

After a year-long surge, global equities appear to have run out of steam with expectations of a strong growth rebound stoking fear that prices will soar, forcing central banks to wind in the ultra-low monetary policies that have supported the rally.

And while the stock gains have been boosted by the rollout of inoculations -- particularly in Britain and the United States -- Europe's stuttering launch has also been compounded by a jump in new cases that has led to lockdowns and containment measures being reimposed.

Back in London, AstraZeneca shares traded flat at 7,125 pence after the Anglo-Swedish drugmaker revised down the effectiveness of its Covid jab.

The company stated Thursday that its vaccine is 76 rather than 79 percent effective at preventing any kind of symptomatic Covid, adding that the jab remains 100 percent effective against severe Covid.

US markets sank again Wednesday, led by a two percent drop in the Nasdaq as technology firms took a further hit from expectations the Federal Reserve will have to lift interest rates earlier than forecast, despite repeated pledges by policymakers that they will not budge.

Oil prices dived more than one percent in a rollercoaster week for the commodity.

"What a single vessel can do to the global oil market is remarkable," said Rystad Energy analyst Bjornar Tonhaugen.

"The stuck vessel in the Suez Canal created the visual definition of a supply route bottleneck, effectively disrupting one of the world's busiest routes for all commodities."

Oil, which struck a 14-month high earlier this month, has also suffered heavy selling in the past couple of weeks on fears about the impact on demand caused by new European lockdowns.

Key figures around 1145 GMT -

London - FTSE 100: DOWN 0.2 percent at 6,700.24 points

Frankfurt - DAX 30: DOWN 0.2 percent at 14,580.99

Paris - CAC 40: DOWN 0.2 percent at 5,934.36

EURO STOXX 50: DOWN 0.3 percent at 3,820.37

Tokyo - Nikkei 225: UP 1.1 percent at 28,729.88 (close)

Hong Kong - Hang Seng: DOWN 0.1 percent at 27,899.61 (close)

Shanghai - Composite: DOWN 0.1 percent at 3,363.59 (close)

New York - Dow: FLAT at 32,420.06 (close)

Euro/dollar: DOWN at $1.1812 from $1.1813 at 2200 GMT

Pound/dollar: UP at $1.3725 from $1.3686

Euro/pound: DOWN at 86.06 pence from 86.31 pence

Dollar/yen: UP at 109.08 yen from 108.73 yen

West Texas Intermediate: DOWN 1.9 percent at $60.04 per barrel

Brent North Sea crude: DOWN 1.6 percent at $63.40 per barrel