Europe midday: Shares mixed as investors eye UK Brexit vote
European shares were mixed at midday on Wednesday as investors eyed the outcome of a UK parliamentary vote on the Brexit trade deal amid new concerns over tougher coronavirus restrictions.
The pan-European Stoxx 600 index had nudged up by 0.17%, with the UK FTSE 100 flat and Germany’s DAX 0.07% higher. US futures indicated a positive start with the Dow Jones tipped to be 91 points higher after a weaker session on Tuesday.
Sentiment had been lifted as the UK government approved AstraZeneca and Oxford University's Covid-19 vaccine, providing an extra boost after Britain and the EU reached a Brexit trade agreement last week. Parliament is expected to pass the deal later in the day.
Bank shares were up on the Brexit news, with HSBC, Lloyds Banking Group and Barclays all higher.
“There are some things happening out there that suggests that risk appetite is strong,” said AJ Bell investment director Russ Mould.
“If you’re looking through to 2021, we’re hoping that the vaccines will begin to counteract the effect of the pandemic, and hopefully economic activity will begin to normalise.”
Travel and leisure stocks were up as the rollout of Covid-19 vaccines across the continent offset rising infection rates. Travel food outlet operator SSP, which owns the Upper Crust chain, outperformed the broader market, rising 3.7%.
Shares in AstraZeneca were up 0.27% after jumping 3.3% earlier ahead of the news that the UK Medicines and Healthcare products Regulatory Agency had provided authorisation for emergency supply of its vaccine.
Unlike the Pfizer/BionTech vaccine, which was approved at the start of December and needs to be stored at -70C, the AstraZeneca vaccine can be stored, transported and handled at normal refrigerated conditions for at least six months, making the rollout much simpler.
The pharmaceuticals company said clinical trials had shown that administration of two doses with an interval of between four and 12 weeks was safe and effective at preventing symptomatic Covid-19, with no severe cases and no hospitalisations more than 14 days after the second dose.
AstraZeneca is aiming to supply millions of doses in the first quarter as part of an agreement with the government to supply up to 100m in total.