Europe open: Shares slip as investors take profits

The pan-European Stoxx 600 was down 0.53% with all major continental bourses lower as the logistical reality of providing a vaccine globally started to dawn on investors. US futures were also all lower.

"Now that a couple of days have gone by and we’ve had more time to absorb the enormity of this week’s announcement, we are now starting to hear some more discerning voices make their presence felt, in terms of the logistical difficulties involved in the distribution of this vaccine, as well as how effective the vaccine is likely to be on a longer-term basis," said CMC Markets analyst Michael Hewson.

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.

On the downside, Sainsburys slumped as its shares went ex-dividend, along with Shell.

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.