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European markets head for flat open as vaccine rally falters

  • London's FTSE is seen opening 9 points lower at 6,352, Germany's DAX 5 points lower at 13,120 and France's CAC 40 up 3 points at 5,486, while Italy's FTSE MIB is seen 40 points lower at 21,400, according to IG.

LONDON — European stocks are expected to see a lackluster open on Wednesday as a global market rally falters following a spate of positive coronavirus vaccine news.

London's FTSE is seen opening 9 points lower at 6,352, Germany's DAX 5 points lower at 13,120 and France's CAC 40 up 3 points at 5,486, while Italy's FTSE MIB is seen 40 points lower at 21,400, according to IG.

The stall in global markets began on Tuesday, with European stocks closing lower despite the backdrop of more positive coronavirus vaccine news from Moderna, which announced on Monday that preliminary data showed its coronavirus vaccine was more than 94% effective at preventing Covid-19. That news had come after Pfizer and BioNTech's vaccine candidate was found to be more than 90% effective.

Elsewhere, U.S. stock futures were little changed in overnight trading Tuesday as investors digested the recent record rally in equities. Dow futures fell 21 points. Futures for the S&P 500 and Nasdaq-100 also edged down marginally.

Dampened sentiment comes as U.S. retail sales came in lower than expected for October as millions of Americans lost their unemployment benefits amid the surge in coronavirus cases. The U.S. 7-day average of daily new Covid-19 infections surpassed 150,000 for the first time on Monday, according to a CNBC analysis of Johns Hopkins data.

Meanwhile, Asia-Pacific markets were mixed in Wednesday trade as investors remain cautious as coronavirus cases continued to surge. Data from Japan showed exports did much better than expected in October, falling 0.2%, according to the Ministry of Finance. That's compared to a 4.5% decline forecast by economists in a Reuters poll. It followed a 4.9% drop in September.

Exports were helped by a rise in demand for Japanese cars by China and the U.S., which drove up shipments, according to Reuters.

Maersk Group reports earnings Wednesday and a slew of European countries report new car registration data.

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– CNBC's Weizhen Tan and Maggie Fitzgerald contributed to this market report.

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