Europe midday: Shares lower as AstraZeneca/EU vaccine spat hits sentiment

European shares were lower at lunchtime on Wednesday as investors held fire ahead of a US Federal Reserve decision on policy later in the day and a row between AstraZeneca and the EU over Covid-19 vaccine supply dampened sentiment.

The pan-European Stoxx 600 index was down 0.88% in early trade with major bourses all in the red after a mixed morning session.

Germany’s DAX was down 1.22% as German consumer sentiment plummeted; hitting -15.6 against the -7.8 forecast as extending a stricter lockdown to contain the coronavirus pandemic put a halt to shopping.

Investors were also eyeing a bumper day of US corporate earnings from Apple, Facebook and Tesla.

As coronavirus infections in Europe soared, with a million new infections every four days, the EU attacked AstraZeneca over its announcement that it would not fully meet a contract to supply its vaccine.

The company argued that the EU's late decision to agree a contract meant the company did not have enough time to iron out glitches in setting up production lines.

In equity news, Danish medical equipment maker Ambu led the gainers after the company reported a 39% rise in first quarter revenue. The shares rose 11.83% on the news.

Evotec shares rose after the US Department of Defence had awarded the German drug maker a $28.6m contract to produce monoclonal antibodies for use in the development of a treatment for Covid-19.

LVMH rose as booming sales at fashion brands like Louis Vuitton, particularly in China, helped to cushion the impact of the coronavirus pandemic.

Centrica shares rose 4.95% after a 'buy' recommendation from Goldman Sachs.

Shares in French shopping mall operators Klepierre and Unibail surged 18% and 14% respectively, after comments from a government minister eased concerns about a third national lockdown.