FILE – This September 2020 photo provided by Johnson & Johnson shows a single-dose COVID-19 vaccine being developed by the company.
AP
European stocks edged lower Tuesday, losing momentum after the pause of a key coronavirus trial as traders waited for earnings from some of the world’s leading banks.
Up 0.7% on Monday, the Stoxx Europe 600 SXXP, -0.43% weakened by 0.5%.
The German DAX DAX, -0.47%, French CAC 40 PX1, -0.58% and U.K. FTSE 100 UKX, -0.47% also sagged in early action.
U.S. stocks SPX, +1.64% blasted higher Monday on little news during a light Columbus Day holiday, with the tech-heavy Nasdaq Composite COMP, +2.55% rallying 2.6% to its third-highest close in history. But futures ES00, -0.51% NQ00, -0.31% were lower as Johnson & Johnson JNJ, +0.57% on Monday night paused its trial of a coronavirus vaccine after an unexplained illness. It’s not uncommon for drugmakers to pause trials in this way, and so far the pause is not the more serious clinical hold.
Third-quarter earnings season starts Tuesday with results from JPMorgan Chase JPM, +1.22% and Citigroup C, +2.11%, as well as Johnson & Johnson.
Thursday, meanwhile, is the U.K.’s self-imposed date to reach a trade agreement with the European Union. The current arrangement lasts until the end of the year. Data from the U.K. showed the unemployment rate rose to 4.5% in the three months ending August, which was higher than expected but masks what is expected to be a bigger jump once the furlough program expires at the end of October.
Of stocks on the move, MorphoSys MOR, -8.32% MOR, +2.01% shares slumped 9% as the dual-listed biopharmaceutical said it’s selling a €325 million convertible bond.
Rolls-Royce RR, -8.13% shares dropped 8%, the second day of sharp losses for the troubled engine maker after nearly doubling in value last week.
A Rolls-Royce customer, Airbus AIR, -3.62%, dropped 3% after a downgrade to underweight from hold at JPMorgan Cazenove. The broker cited a more cautious view on air travel and airline profitability, which led it to reduce its view on deliveries next year by 10%.
SSE SSE, +3.39% shares rose 5% after agreeing to sell its 50% share in two energy-from-waste ventures for £995 million to an infrastructure fund managed by First Sentier Investors.
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