European-stock and US futures break after record-setting day


On November 16, 2020, a sign at the entrance of a grocery store in central Stockholm, Sweden reminds customers about the social sign.

Amir Nabizadeh / Agence France-Presse / Getty Images

European shares fell on Tuesday, as traders took a break after a rally on signs that a second coronovirus vaccine worked effectively.

On Monday after Biotech, 1.2% Modern said its vaccine was 94.5% effective, Stoxx Europe 600 SXPP,
-0.44%
0.2% lower edge, and German DAX DAX,
-0.41%,
French CAC 40 px 1,
-0.30%
And UK FTSE 100 UKX,
-1.07%
Also saw small decline.

One day after the S&P 500 SPX,
+ 1.16%
One off record, futures ES00,
-0.47%
The US index also weakened.

Read also: Dow achieved its fastest bear-market recovery in 30 years

While modern vaccine news was a welcome development – in particular, as did top infectious disease specialist Dr. Anthony Fauci said, because whoever received it, could not find a serious case – the current news is still worrying. According to the COVID tracking project, hospitals in the US reached a new record on Monday, while California and New Jersey were in areas tightening regulations.

After the market closed, Richard Clarida, vice chairman of the Federal Reserve, said further monetary and fiscal support would be needed for the economy, similar to Jerome Powell’s remarks made last week. “We believe these comments are in line with our expectation of the Fed, ultimately lengthening the maturity structure of its asset purchases, most likely at IOMC in December. [Federal Open Market Committee] Meeting, ”said Lewis Alexander, American Chief Economist at Nomura.

Banco Subdale SAB,
+ 2.33%
Rose’s 3% – Monday’s 25% increase – came just hours after the big Spanish bank struck a deal to sell its US operations to PNC Financial Services, after confirming negotiations to be bought by BBVA. BBVA BBVA,
-6.42%
Shares slipped 5% after jumping 15% on Monday.

Analysts at Jefferies said buying Subdale would give BBVA a broader footprint with strong market share in small-to-medium-sized enterprises and Spanish regions.

Intermediate Capital Group ICP,
+ 5.36%
The shares rose 7%, as the UK fund manager reported a 29% increase in its fiscal first-half pretax profit, saying it accelerated its funding timetable.

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