European Stocks Close Mixed After Cautious Session

European markets turned in a mixed performance on Tuesday with investors largely making cautious moves amid concerns about rising coronavirus cases and extension of lockdown measures in some countries.

Concerns over rising tensions between the EU and China weighed as well.

According to reports, the European Union is looking at restricting exports of Covid vaccines across the English Channel.

The EU, along with the U.S. and Canada, has imposed sanctions on Chinese officials for alleged human rights abuses against Uyghur Muslims. China immediately announced retaliatory sanctions against the EU that appeared broader.

The pan European Stoxx 600 slid 0.2%. The U.K.’s FTSE 100 declined 0.4% and France’s CAC 40 shed 0.39%, while Germany’s DAX and Switzerland’s SMI ended higher by 0.03% and 0.45%, respectively.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Iceland, Netherlands, Norway, Poland, Russia and Sweden ended weak.

Czech Republic, Ireland, Portugal and Spain moved higher, while Greece and Turkey closed flat.

In the UK market, Rolls-Royce Holdings ended nearly 6% down and IAG shed about 4.4%. BP, Antofagasta, Royal Dutch Shell, JD Sports Fashion, Informa, Melrose Industries, Standard Life, Kingfisher, Glencore, Associated British Foods and Anglo American lost 2 to 4%.

On the other hand, United Utilities, Severn Trent, Bunzl, BAE Systems, BT Group, Ocado Group and Admiral Group gained 2 to 3%.

In France, ArcelorMittal and Renault both ended lower by more than 3%. Unibail Rodamco, Valeo, Air France-KLM, STMicroElectronics, Airbus Group, Technip and Safran lost 1 to 3%.

Essilor, Vivendi, Carrefour, Air Liquide and Dassault Systemes closed higher.

In the German market, Volkswagen ended more than 6%

Lufthansa shed about 4%. Thyssenkrupp, Infineon Technologies, Continental, Daimler and BMW also ended sharply lower.

E.ON, Deutsche Wohnen, Vonovia, RWE, Merck, Deutsche Telekom and Bayer closed with strong gains.

Elsewhere, in the Swedish market, Volvo shares tumbled by about 7% after the company warned that the global shortage of semiconductors would affect its production in the second quarter.

In economic releases, official data showed Britain’s jobless rate unexpectedly fell to 5% in the three months to January, when the country entered a new virus lockdown. That was below economists’ forecast of 5.2%.

UK manufacturers expect output to pick up rapidly over the coming three months, the Industrial Trends Survey from the Confederation of British Industry showed on Tuesday.