Europe totters after Wall Street rally, Maersk jumps

European stocks wobbled in thin trading on Wednesday, failing to draw strength from a record run for Wall Street's S&P 500, as investors feared a resurgence in coronavirus cases could dent an economic recovery in the continent.

After opening lower, the pan-European STOXX 600 index edged up 0.1pc, with bourses in Germany, London and France trading nearly flat.

Danish stocks outperformed after shipping group Maersk jumped 5pc as its full-year earnings guidance came above its forecast due to cost cuts.

Brewery Royal Unibrew jumped 9pc to the top of STOXX 600 after it raised its 2020 earnings forecast.

Trillions of dollars in stimulus and a rally in technology stocks helped the S&P 500 confirm a US equities bull market was intact on Tuesday, but doubts over the strength of a global recovery limited gains across other markets on Wednesday.

"Volumes over the last two days have been the lowest since Christmas eve," said Chris Bailey, European strategist at Raymond James in London. "And technically, it wasn't that exciting although the S&P 500 was at a new high."

"It's very much August markets and the bigger moves will come about in September and October."

Travel stocks like British Airways-owner IAG and easyJet rose after UK's health minister said the government was working with Heathrow Airport on a plan to use COVID-19 testing to help shorten the number of days that travellers have to spend in quarantine.

The sector has come under pressure recently, with several countries in Europe imposing fresh travel curbs due to a pick-up in coronavirus cases.

Energy majors BP, Total and Royal Dutch Shell were down about 1pc as crude prices slid on concerns about US fuel demand.

German utility group RWE fell 3.6pc as it launched a share issue to finance its purchase of wind turbine maker Nordex's project development pipeline.

Belgian biotech company Galapagos slumped nearly 26pc after US health regulators rejected its lead product filgotinib to treat rheumatoid arthritis.