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Nov. 11, 2020, 10:49 a.m. EST

European stocks up for third straight day on COVID-19 vaccine hopes, as Lagarde warns of overoptimism

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By Barbara Kollmeyer

European stocks climbed on Wednesday, driven by continued hopes over COVID-19 vaccines, and further hints from European Central Bank President Christine Lagarde about policy easing next month.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.20% rose nearly 1%, for its third straight win. The German DAX index /zigman2/quotes/210597999/delayed DX:DAX +0.30% and French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.08% rose 0.4% each and the FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +0.32% rose 0.9% each.

Monday marked a nearly 4% gain for the Stoxx 600 and the biggest one-day rise since March, with the index up another 0.9% on Tuesday.

U.S. stocks rose at the start of trading , with technology stocks rebounding from a recent selloff as investors continued to rotate out of technology and into cyclical names well placed to benefit from an economic recovery.

Monday’s news from drugmaker Pfizer /zigman2/quotes/202877789/composite PFE -0.14% and partner BioNTech /zigman2/quotes/214419716/composite BNTX -4.02% — that their COVID-19 vaccine candidate was more than 90% effective in preventing the disease in preliminary results — has fueled gains for stocks geared to a recovery from the pandemic.

Shares of International Consolidated Airlines /zigman2/quotes/208070069/delayed UK:IAG +2.18% , which operates British Airways, was among Wednesday’s best performers in Europe, up nearly 7%.

Read: Everything you need to know about BioNTech and the married couple behind the COVID-19 vaccine at the front of a global race

Plus: China internet names tumble over fears of regulatory crackdown

But caution was heard from ECB President Lagarde on Wednesday, as she made comments to the bank’s Forum on Central Banking.

“While the latest news on a vaccine looks encouraging, we could still face recurring cycles of accelerating viral spread and tightening restrictions until widespread immunity is achieved,” Lagarde reportedly said, as she described a “unsteady, stop-start recovery” that hinges on the timing of a vaccine rollout.

The ECB said at its meeting in late October that it would “recalibrate” its monetary policy tools at its next meeting on Dec. 10. The region has been dealing with a second wave of COVID-19 that has even swept up Germany. Many countries have been forced back into lockdowns and curfews.

Banks fell in Europe, led by shares of ABN Amro /zigman2/quotes/209088556/delayed NL:ABN -1.30% , which tumbled more than 5% after the Dutch bank’s results. The bank reported higher third-quarter earnings , boosted in part by lower impairments, but analysts focused on a sharp fall in net interest income.

Net interest income for ABN slumped 10%, and was guided to trend down further in 2021, noted Suvi Platerink Kosonen, analyst at ING, in a note to clients.

Elsewhere, BNP Paribas /zigman2/quotes/206351084/delayed FR:BNP -0.94% dropped 2% and UBS /zigman2/quotes/206172872/composite UBS -0.72% fell 0.8%.

Shares of Rolls-Royce /zigman2/quotes/203646520/delayed UK:RR +2.21% slumped 8%, with the engineering company giving back all of a 7% surge on Tuesday.

Shares of Continental /zigman2/quotes/206791451/delayed XE:CON +0.17% slid over 5% after the German car-parts supplier provided new guidance for 2020 and said that it expects lower sales and a smaller adjusted earnings margin.

Pharmaceutical names were up across the board, with AstraZeneca /zigman2/quotes/200304487/composite AZN +0.10% /zigman2/quotes/203048482/delayed UK:AZN +1.53% up 2.3% and Novartis /zigman2/quotes/203243705/composite NVS +1.07% /zigman2/quotes/203286410/delayed CH:NOVN +0.59% up over 1% each, and Roche Holding /zigman2/quotes/206324342/delayed CH:ROG +0.48% gaining nearly 3%.

Renewable energy group Siemens Gamesa Renewables Energy /zigman2/quotes/205820667/delayed ES:SGRE +1.38% climbed 7%. Elsewhere utilities got a boost, with EDP Renovaveis /zigman2/quotes/205832062/delayed UK:0ML1 +0.43% also up 7%, and Électricité de France /zigman2/quotes/201783867/delayed FR:EDF +1.98% climbing 4.5%.

/zigman2/quotes/210599654/delayed
XX : STOXX
409.48
+0.80 +0.20%
Volume: 0.00
Jan. 19, 2021 12:21p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,890.54
+42.19 +0.30%
Volume: 18,410
Jan. 19, 2021 12:21p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,621.52
+4.25 +0.08%
Volume: 19,691
Jan. 19, 2021 12:21p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,742.27
+21.62 +0.32%
Volume: 166,507
Jan. 19, 2021 11:21a
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/zigman2/quotes/202877789/composite
US : U.S.: NYSE
$ 36.70
-0.05 -0.14%
Volume: 34.29M
Jan. 15, 2021 4:00p
P/E Ratio
23.77
Dividend Yield
4.25%
Market Cap
$203.99 billion
Rev. per Employee
$586,070
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/zigman2/quotes/214419716/composite
US : U.S.: Nasdaq
$ 101.59
-4.26 -4.02%
Volume: 3.15M
Jan. 15, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$24.46 billion
Rev. per Employee
$92,777
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/zigman2/quotes/208070069/delayed
UK : U.K.: London
164.40 p
+3.50 +2.18%
Volume: 10.40M
Jan. 19, 2021 11:21a
P/E Ratio
N/A
Dividend Yield
6.35%
Market Cap
£8.06 billion
Rev. per Employee
£346,172
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/zigman2/quotes/209088556/delayed
NL : Netherlands: Euronext Amsterdam
8.63
-0.11 -1.30%
Volume: 1.36M
Jan. 19, 2021 12:21p
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/zigman2/quotes/206351084/delayed
FR : France: Euronext Paris
44.39
-0.42 -0.94%
Volume: 790,926
Jan. 19, 2021 12:21p
P/E Ratio
8.00
Dividend Yield
0.00%
Market Cap
€55.44 billion
Rev. per Employee
€563,827
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/zigman2/quotes/206172872/composite
US : U.S.: NYSE
$ 15.13
-0.11 -0.72%
Volume: 1.79M
Jan. 15, 2021 4:00p
P/E Ratio
9.97
Dividend Yield
2.41%
Market Cap
$54.27 billion
Rev. per Employee
$495,955
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/zigman2/quotes/203646520/delayed
UK : U.K.: London
106.55 p
+2.30 +2.21%
Volume: 18.99M
Jan. 19, 2021 11:21a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
£8.86 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206791451/delayed
XE : Germany: Xetra
118.50
+0.20 +0.17%
Volume: 102,300
Jan. 19, 2021 12:20p
P/E Ratio
N/A
Dividend Yield
2.53%
Market Cap
€23.64 billion
Rev. per Employee
€184,208
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/zigman2/quotes/200304487/composite
US : U.S.: Nasdaq
$ 51.34
+0.05 +0.10%
Volume: 9.52M
Jan. 15, 2021 4:00p
P/E Ratio
53.60
Dividend Yield
2.67%
Market Cap
$135.35 billion
Rev. per Employee
$346,812
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/zigman2/quotes/203048482/delayed
UK : U.K.: London
7,779.00 p
+117.00 +1.53%
Volume: 558,681
Jan. 19, 2021 11:21a
P/E Ratio
51.99
Dividend Yield
2.78%
Market Cap
£99.66 billion
Rev. per Employee
£270,731
loading...
/zigman2/quotes/203243705/composite
US : U.S.: NYSE
$ 95.63
+1.01 +1.07%
Volume: 2.41M
Jan. 15, 2021 4:00p
P/E Ratio
30.75
Dividend Yield
2.10%
Market Cap
$211.26 billion
Rev. per Employee
$457,559
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/zigman2/quotes/203286410/delayed
CH : Switzerland: SWX
CHF 85.53
+0.50 +0.59%
Volume: 1.38M
Jan. 19, 2021 12:21p
P/E Ratio
28.90
Dividend Yield
3.45%
Market Cap
CHF188.06 billion
Rev. per Employee
CHF454,248
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/zigman2/quotes/206324342/delayed
CH : Switzerland: SWX
CHF 316.45
+1.50 +0.48%
Volume: 321,772
Jan. 19, 2021 12:21p
P/E Ratio
21.15
Dividend Yield
2.84%
Market Cap
CHF271.73 billion
Rev. per Employee
CHF628,905
loading...
/zigman2/quotes/205820667/delayed
ES : Spain: Madrid
34.57
+0.47 +1.38%
Volume: 282,071
Jan. 19, 2021 12:21p
P/E Ratio
N/A
Dividend Yield
0.12%
Market Cap
€23.27 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205832062/delayed
UK : U.K.: London
23.18
+0.10 +0.43%
Volume: 30,460
Jan. 19, 2021 9:00a
P/E Ratio
52.27
Dividend Yield
0.35%
Market Cap
€20.11 billion
Rev. per Employee
€1.21M
loading...
/zigman2/quotes/201783867/delayed
FR : France: Euronext Paris
12.39
+0.24 +1.98%
Volume: 493,735
Jan. 19, 2021 12:21p
P/E Ratio
27.12
Dividend Yield
1.21%
Market Cap
€38.30 billion
Rev. per Employee
€432,941
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