Britain’s approval of a vaccine jumps London shares and wipes out European losses | latest news

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European stocks erased their early losses to close unchanged Wednesday, thanks to a jump of more than 1 percent in the leading index of the London Stock Exchange, after Britain became the first country to approve a vaccine for Pfizer and Biontech to prevent Covid-19.

The FTSE 100 index in London outperformed most of its peers in the region, after Britain said that the use of the vaccine will start next week, and in light of a sharp decline in the pound due to the uncertainty surrounding the exit trade agreement from the European Union.

The pan-European STOXX 600 index closed unchanged, with Rio Tinto, BHB and HSBC in London among the biggest positive factors.

Frankfurt-listed Biontech jumped 4 percent, while the German benchmark DAX index fell 0.5 percent, underperforming most other regional markets.

Germany intends to extend the restrictions imposed on restaurants and hotels to January 10, sources familiar with the discussions between the federal government and 16 states said today.

“The extension (of restrictions) will extend the damage to economic activity,” said Bert Cullen, chief economist of the Eurozone at ING.

This means that a longer period of weak activity affects factors such as unemployment, income and bankruptcies, and ultimately leads to a longer recovery. ”

Data released showed that unemployment in the euro zone fell in October, as the economic recovery continued before the second wave of the Covid-19 pandemic hit.

Spanish shares closed up 1%, near levels not seen since early March. Economy Minister Nadia Calpeno said the recovery in Spain’s economy that began in the third quarter of the year is likely to continue into the current quarter.

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