Joe Biden warned that the virus crisis might not ease for another three months. ©AFP Brendan Smialowski

London (AFP) – Europe’s stock markets slid Wednesday as news of mounting infections and fears of tighter restrictions eclipsed Britain becoming the first nation to approve a cheap coronavirus vaccine developed by UK pharmaceuticals giant AstraZeneca and Oxford University.

The Astra jab — which will be rolled out in Britain from January 4 — can be stored, transported and handled at normal refrigerated conditions.

It is therefore cheaper and easier to administer than the rival Pfizer/BioNTech and Moderna vaccines which require freezing, and has sparked renewed hope of a return to normality in 2021.

While London stocks initially rose, they had turned lower in afternoon trading despite European Union leaders signing their post-Brexit trade deal with Britain — with just one day to go until the UK finally leaves the bloc.

In mid-afternoon trading, London’s FTSE 100 index was 0.3 percent lower. 

In the eurozone, Paris stocks shed 0.1 percent while Frankfurt slid 0.3 in a shortened trading session as Germany mulled extending its virus lockdown in the face of rising cases and deaths.

The EU reaching an agreement in principle with China on an investment pact also failed to boost sentiment.

Wall Street opened higher, with the Dow gaining 0.3 percent.

Asia was also mostly firmer with vaccine and economic recovery optimism helping investors look past an alarming surge in Covid-19 cases around the world.

In foreign exchange activity, the US dollar languished around 2.5-year lows versus the euro and pound, as investor appetite grew for riskier assets like equities.

Bitcoin, the world’s most popular cyber currency, extended this month’s blistering run to strike another record high at $28,572.10.

Back in London, Wednesday’s announcement sent AstraZeneca shares racing 1.8 percent higher, but it had given up the gains by the afternoon. Moreover, the stock remains about 2.6 percent down over the course of this year despite development of the group’s landmark vaccine.

Shares in drugs rival GlaxoSmithKline also rose and then gave up the gains. GSK shares have shed almost a quarter in value since the start of 2020.

“The pharmaceuticals and biotech sector is down nearly 10 percent for the year,” AJ Bell investment director Russ Mould told AFP.

“This seems like rank ingratitude given the importance of the vaccines upon which they are working, with the AstraZeneca-University of Oxford product due for roll-out any day now — and GlaxoSmithKline hopeful of launching a product in late 2021.

“Yet through their very success, the drug firms are helping to promote the share prices of others — companies which will benefit much more dramatically from any success in the effort to contain and beat back the virus and permit any degree of return to economic normality.”

– Key figures around 1430 GMT –

London – FTSE 100: DOWN 0.3 percent at 6,585.16 points

Frankfurt – DAX 30:  DOWN 0.3 percent at 13,718.78

Paris – CAC 40: DOWN 0.1 percent at 5,604.90

EURO STOXX 50: DOWN 0.2 percent at 3,573.61

New York – Dow: UP 0.3 percent at 30,415.09

Tokyo – Nikkei 225: DOWN 0.5 percent at 27,444.17 (close)

Hong Kong – Hang Seng: UP 2.2 percent at 27,147.11 (close)

Shanghai – Composite: UP 1.1 percent at 3,414.45 (close)

Pound/dollar: UP at $1.3580 from $1.3502 at 2200 GMT

Euro/pound: DOWN at 90.39 pence from 90.71 pence

Euro/dollar: UP at $1.2279 from $1.2249

Dollar/yen: DOWN at 103.10 yen from 103.58 yen

West Texas Intermediate: DOWN 0.5 percent at $47.75 per barrel

Brent North Sea crude: UP less than 0.1 percent at $51.10

burs-rl/cdw

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.