LONDON — European stocks advanced Tuesday, continuing the previous session’s rally on hopes an effective coronavirus vaccine has been found.
The pan-European Stoxx 600 gained 0.6% by the afternoon, tech stocks dropping 1.1% while banks surged another 3.4% as signs of a rotation from growth to value emerged.
The upward momentum comes following a rally in global stock markets on Monday, after U.S pharmaceutical giant Pfizer and German biotech firm BioNTech said their coronavirus vaccine was more than 90% effective in preventing Covid-19 among those without evidence of prior infection.
The news prompted global markets — that had already been trading higher Monday as investors reacted to Joe Biden’s defeat of Donald Trump in the U.S. presidential race, according to NBC projections — to rocket.
U.S. stock futures were also turbulent in early morning trading on Tuesday following the record-setting rally in the previous session. Futures on the Dow Jones Industrial Average pointed sharply higher having previously fallen by more than 200 points. S&P 500 futures and Nasdaq 100 futures also traded in fractionally positive territory.
Meanwhile, markets in Asia-Pacific were mixed during Tuesday trade while airline stocks soared as investors in the region reacted to positive coronavirus vaccine developments overnight.
Adidas on Tuesday offered a cautious outlook for sales and operating profit in the fourth quarter amid a resurgence of the coronavirus pandemic across Europe. However, the German sportswear brand said it expects growth in Chinese sales and reported third-quarter earnings slightly above expectations. Adidas shares traded 4.9% lower by early afternoon.
In terms of individual share price action, mall operator URW saw its shares bounce more than 17% after shareholders rejected a planned rights issue, while rival Klepierre added 15%.
At the bottom of the European blue chip index, Danish hearing aid manufacturer Gn Store Nord fell 6%.
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