European markets head for lower open after vaccine news sparked global rally

  • London's FTSE is seen opening 87 points lower at 6,110, Germany's DAX down 222 points at 12,896, France's CAC 40 is seen 101 points lower at 5,235 and Italy's FTSE MIB down 296 points at 20,429, according to IG.

LONDON — European stocks are expected to open lower Tuesday, despite hopes that an effective coronavirus vaccine has been found.

London's FTSE is seen opening 87 points lower at 6,110, Germany's DAX down 222 points at 12,896, France's CAC 40 is seen 101 points lower at 5,235 and Italy's FTSE MIB down 296 points at 20,429, according to IG.

The lower open comes following a rally in global stock markets on Monday, after U.S pharmaceutical giant Pfizer and German biotech firm BioNTech said their coronavirus vaccine was more than 90% effective in preventing Covid-19 among those without evidence of prior infection.

The news prompted global markets — that had already been trading higher Monday as investors reacted to Joe Biden's defeat of Donald Trump in the U.S. presidential race, according to NBC projections — to rocket.

However, U.S. stock futures declined in early morning trading on Tuesday following the record-setting rally in the previous session. Futures on the Dow Jones Industrial Average fell 126 points. S&P 500 futures and Nasdaq 100 futures also traded in negative territory. Earlier, Dow futures had fallen more than 200 points.

Meanwhile, markets in Asia-Pacific were mixed during Tuesday trade while airline stocks soared as investors in the region reacted to positive coronavirus vaccine developments overnight.

U.K. and French unemployment figures are due Tuesday, and earnings come from Adidas, Henkel and Siemens Energy.

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