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 on Tuesday, losing momentum after the pause of a key coronavirus vaccine trial as traders waited for earnings from some of the world’s leading banks.
Up 0.7% on Monday, the Stoxx Europe 600
SXXP,
weakened by 0.1%.
The German DAX
DAX,
,
French CAC 40
PX1,
and U.K. FTSE 100
UKX,
also sagged.
U.S. stocks
SPX,
blasted higher on Monday on little news during a light Columbus Day holiday, with the technology-heavy Nasdaq Composite
COMP,
rallying 2.6% to its third-highest close in history. But futures
ES00,
NQ00,
were lower as Johnson & Johnson
JNJ,
on Monday night paused its trial of a coronavirus vaccine after an unexplained illness. It isn’t uncommon for drugmakers to pause trials in this way, and so far the pause isn’t the more serious clinical hold.
Third-quarter earnings season starts on Tuesday with results from JPMorgan Chase
JPM,
and Citigroup
C,
,
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 job furlough program expires at the end of October.
Of stocks on the move, MorphoSys
MOR,
MOR,
shares slumped 9% as the dual-listed biopharmaceutical said it is selling a €325 million convertible bond.
Rolls-Royce
RR,
shares dropped 6%, the second day of sharp losses for the troubled engine maker after nearly doubling in value last week.
A Rolls-Royce customer, Airbus
AIR,
,
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’s
SSE,
shares rose 4%, 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.