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

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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.

Up 0.7% on Monday, the Stoxx Europe 600
XX:SXXP
weakened by 0.2%.

The German DAX
DX:DAX,
French CAC 40
FR:PX1
and U.K. FTSE 100
UK: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
SP 500 FUTURES

NASDAQ 100 FUTURES
were mixed 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 JPMorgan Chase
JPM,
BlackRock and Johnson & Johnson each topping analyst estimates.

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
XE:MOR

MOR
shares slumped 9% as the dual-listed biopharmaceutical said it is selling a €325 million convertible bond.

Rolls-Royce
UK: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
FR: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
UK: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.

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