MILAN/FRANKFURT: European shares made a positive start to the month on Tuesday following record-breaking gains in November, with optimism around a coronavirus vaccine strengthening the case for economic recovery. Hopes the pandemic might end soon came from Pfizer and BioNTech seeking emergency approval from the European regulator of their vaccine candidate, neck-and-neck with Moderna, which announced it would ask the regulator to recommend conditional approval for its shot.
After a day's dip when investors took some profits, the pan-European STOXX 600 index was back in the black, up 0.7%. The index ended November with gains of nearly 14%. Gains were largely broad-based with basic materials in the lead as robust China factory activity data buoyed copper and iron ore prices. Defensive plays such as healthcare and utilities lagged.
After marking its best month in over three decades, London's blue-chip index rallied 1.9% to post its best day in three weeks, propelled by data showing improving confidence and the UK's fastest growth in factory activity in three years.
Elsewhere in Europe, impacts of lockdowns to curb the spread of Covid-19 continued to be felt, with manufacturing activity in France and Germany slowing in November. Among stocks, Italian lender Unicredit SpA logged its worst day since March, sliding 8% after it said Chief Executive Officer Jean Pierre Mustier will step down in April next year over disagreements with the board.
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