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European Shares End Mixed As US Inflation Jumps

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Last updated: 06/10/2021 12:41:12

12:41 PM EDT, 06/10/2021 (MT Newswires) -- European shares ended mixed on Thursday, with investors digesting the jump in US inflation to 5% in May from 4.2% in April, above expectations of a 4.7% reading, and the European Central Bank rate decision, with the central bank keeping an accelerated pace of asset purchases.

The French CAC ended down 0.3%, the European STOXX 600 closed up 0.1%, and the Swiss Market Index edged 0.2% higher. Meanwhile, the German DAX 30 ended down 0.6% and the FTSE 100 closed up 0.1%.

The ECB maintained its current policies and held interest rates, just adding that purchases under its pandemic emergency purchase program will remain at a faster pace over the coming quarter. Net asset purchases will continue unchanged under the 1.850 trillion-euro ($2.252 trillion) program until at least the end of March 2022, or when the pandemic is over.

Net purchases under the asset purchase program will continue at a monthly pace of 20 billion euros. The ECB's interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility remain unchanged at 0%, 0.25% and -0.50%, respectively.

The European Parliament called for the temporary lifting of intellectual property rights protection for COVID-19 vaccines to boost the supply and affordability of the jabs globally. The resolution, with 355 votes in favor, 263 against and 71 abstentions, proposes the launch of negotiations on a temporary waiver of the World Trade Organization's TRIPS agreement on patents. It also calls on the UK and US to end their export ban on vaccines and raw materials.

Meanwhile, the Indian government is expected to provide indemnity to COVID-19 vaccine producers such as Pfizer (PFE.F), Reuters reported, citing three government sources. When selling its vaccine to other countries, Pfizer has not done so without gaining indemnity against legal action over adverse effects related to its jab developed alongside BioNTech (22UA.F). Pfizer ended up 2.3% and BioNTech closed marginally lower.

Biotechnology company Moderna (0QF.F) requested the US Food and Drug Administration to authorize its COVID-19 vaccine for emergency use in adolescents between 12 and 18 years of age. The drugmaker said it already applied for regulatory approval in Canada and the European Union. Shares of Moderna fell 2.8%.

On the corporate front, Halma (HLMA.L) said it is confident in the year ahead following a strong start to fiscal 2022 as it reported a higher in fiscal 2021 despite a decline in revenue, which was weighed towards the second half and impacted by negative currency translation effects. Halma shares closed flat.

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