European Stocks Close Lower On Virus Worries, U.S.-China Tensions

(RTTNews) - European stocks ended lower on Wednesday as the euphoria over an agreement on EU stimulus package faded and the focus shifted back to U.S.-China tensions, and surging coronavirus cases around the world.

Tensions between the U.S. and China have come to the fore again after the U.S. asked Beijing to close its diplomatic consulate in Houston within the next 72 hours and Chinese foreign ministry spokesperson Wang Wenbin condemned the action and warned of retaliation if the U.S. does not reverse its decision.

On the coronavirus front, as the U.S. death toll from the coronavirus pandemic topped 142,000, President Donald Trump said the pandemic "will probably, unfortunately, get worse before it gets better". According to the data from Johns Hopkins University, the virus has now infected more than 3.8 million people in the U.S.

Recent positive developments on coronavirus vaccines front, and the EU stimulus package presumably limited the slide in the markets to some extent.

The pan European Stoxx 600 declined 0.87%. Germany's DAX shed 0.51%, the U.K.'s FTSE 100 slid 1% and France's CAC 40 shed 1.32%, while Switzerland's SMI edged down marginally.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Ireland, Netherlands, Norway, Poland, Portugal and Spain closed weak.

Finland, Greece, Iceland, Russia and Sweden moved up, while Turkey ended flat.

In the U.K. market, Melrose plunged nearly 15%. Meggit shed 4.75%, while Burberry Group, Royal Dutch Shell, BP, Whitbread, AstraZeneca, Associated British Foods, HSBC Holdings and TUI lost 2.5 to 4%.

Glencore, BAE Systems, M&G, Coca-Cola and IAG also declined sharply.

Kingfisher shares soared nearly 14% after the home improvement retailer forecast first half underlying profit ahead of last year.

Fresnillo surged up 9.8%. DCC, Smurfit Kappa Group and Polymetal International gained 2.5 to 2.8%.

In the French market, Valeo lost nearly 5% despite settling well off the day's low. The stock declined after the company swung to a 1.2 billion euro loss in the first half of 2020.

Accor, Michelin, Sodexo, Total, Technip, Kering, Societe Generale, Safran, Credit Agricole, Renault, Vivendi, Essilor and ArcelorMittal lost 2 to 5%. BNP Paribas settled nearly 2% down. Veolia bucked the trend and ended stronger by about 2.35%.

In Germany, Merck lost almost 3% and Bayer slid 2.8%. Continental, Thyssenkrupp, Linde, BMW, E.ON and Henkel lost 1 to 2%.