LONDON (UK) – European shares fell on Tuesday as worries over the pandemic cast a shadow on the Chinese trade data that indicated recovery. The US dollar, however, edged away from a three-week low.
The broader Euro STOXX 600 fell 0.4% in early trading. Johnson & Johnson has paused its COVID-19 vaccine candidate clinical trials because of an illness found in a study participant, which was unknown.
The travel and leisure and autos sectors had to bear the brunt, losing 1.7% and 0.6% respectively.
The data indicates that Chinese exporters are recovering swiftly, which has helped MSCI’s broadest index of Asia-Pacific shares, which are from outside Japan, saw a gain of 0.1% after earlier falling into negative territory.
Chinese blue chip shares also had a gain of 0.3% after dipping early in the day.
“The question is not necessarily how China’s trade is doing per se, but how well will consumers spend on Christmas to give some sense of normalcy amid a period of great stress,” said Nordea Investments’ Sebastien Galy in a note.
Jeremy Gatto, an investment manager at Unigestion in Geneva, said, “Biden effectively leading in the polls is removing some element of uncertainty. In investors’ minds, it’s not a question of it we get a stimulus, but when.”