European stocks, U.S. futures lose momentum after vaccine trial pause


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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,
-0.40%
weakened by 0.5%.

The German DAX
DAX,
-0.41%,
French CAC 40
PX1,
-0.52%
and U.K. FTSE 100
UKX,
-0.51%
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,
-0.61%

NQ00,
-0.38%
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,
-9.53%

MOR,
+2.01%
shares slumped 9% as the dual-listed biopharmaceutical said it’s selling a €325 million convertible bond.

Rolls-Royce
RR,
-6.33%
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,
-3.57%,
dropped 3% after a downgrade to underweight from hold at JPMorgan Cazenove. The broker cited a more cautious view on air travel in 2021, as well as a more cautious view on airline profitability, which led it to reduce its view on deliveries next year by 10%.

SSE
SSE,
+3.09%
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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