Europe midday: Shares slip back on renewed Covid fears

European shares continued to slide on Thursday as nervoiurs investors took profits after three days of solid gains.

The pan-European Stoxx 600 index was down 0.4% with all all continental markets lower on renewed Covid-19 fears. Dow Jones futures were also lower.

"During the week, the optimism surrounding the possible Covid-19 vaccine story ramped up equity markets, and now things have calmed down," said CMC Markets analyst David Madden.

"Dealers are starting to realise that even though a drug has a very high success rate in late stage trials, the process of obtaining approval and getting it rolled out, could take a long time. Meanwhile, concerns about the health crisis itself have crept back onto the radar. Worries are about rising case numbers have provided dealers with an excuse to trim their exposure to stocks."

In the UK, latest GDP figures from the Office for National Statistics showed the UK economy grew by a record 15.5% in the third quarter as lockdown measures were eased, but slowed in September.

The economy is still 9.7% below where it was at the end of last year. Analysts had been expecting growth of 15.8% in Q3. On the month, GDP growth slowed to just 1.1% in September from a revised 2.2% in August, missing consensus expectations of 1.5% growth.

In equity markets, Burberry shares were higher as the fashion and accessories label posted a 75% drop in first-half profit driven by the Covid-19 crisis but said it had seen an improvement in sales in the second quarter and that revenue would be affected by fewer markdowns.

B&M European Value Retail rose as it announced a special dividend and reported a jump in first-half profit and revenue, having been able to remain open during the first and second lockdowns.

Qinetiq and Hill & Smith were also on the front foot after well-received updates. House builder Vistry also rose as the company lifted 2021 profit forecasts and said it would resume dividend payments.

Legal & General lost ground after saying it planned an unchanged dividend for 2020 and for the payout to increase more slowly than earnings and cash generation over five years. The insurer and asset manager said its "ambition" remained for annual operating profit to be broadly in line with 2019's result of £2.3bn.

In company news, German engineering group Siemens fell even as it reported better-than-expected profit at its industrial business.

Zurich Insurance Group rose 0.8% as it said its new life insurance business picked up in the third quarter, while Italian peer Generali lost 0.8% after saying it would not pay the second tranche of the dividend on 2019 results this year.