European Shares Slide Amid Covid Worries

European stocks fell slightly on Friday as worries about rising U.S.-China tensions and tighter Covid-19 restrictions coming into force around Europe offset optimism over U.S. President-elect Joe Biden announcing a $1.9 trillion stimulus package to boost the world’s largest economy.

The pan European Stoxx 600 dropped 0.4 percent to 410.44 after climbing 0.7 percent in the previous session. The German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 were down between 0.4 percent and 0.6 percent.

Babcock International shares plunged as much as 18 percent after the defense firm said profits had suffered a “negative impact” from civil nuclear insourcing.

Investment manager Ashmore Group rose 0.9 percent after its assets under management (AUM) rose by $7.5bn in the second quarter.

Information technology company AVEVA surged 6.3 percent after saying it remains confident in the full year outlook.

Pharmaceutical company Indivior jumped 9 percent after raising its annual revenue forecast.

Bouygues edged up slightly after its telecommunications arm unveiled a strategic plan for the next five years aiming to become the second biggest telecoms operator in mobile in France.

German business software group SAP advanced 1.4 percent. The company reported fourth-quarter profit after tax on IFRS basis of 1.93 billion euros, up 18 percent from 1.64 billion euros last year.

Siemens Energy fell nearly 5 percent after General Electric Co accused a subsidiary of the power distribution company of stealing trade secrets to rig bids for gas turbine contracts.

In economic releases, official data showed that Britain’s economy contracted at a slower than expected pace in November.

Gross domestic product shrank 2.6 percent month on month in November but slower than the 5.7 percent fall economists’ had forecast.

French consumer prices remained stable on a yearly basis in December, as initially estimated, after rising 0.2 percent in November, final data released by the statistical office Insee revealed.

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