European Markets Close Lower On Virus Concerns

European stocks ended mostly weak on Wednesday as concerns about spikes in coronavirus cases and slow pace of vaccination outweighed some fairly good economic data from the region.

Markets were also looking ahead to U.S. President’s Joe Biden’s infrastructure plan. According to reports, Biden’s infrastructure package could cost $2.25 trillion, with the focus on physical infrastructure, housing, clean energy and manufacturing, among others.

The pan European Stoxx 600 slid 0.24%. The U.K.’s FTSE 100 declined 0.86%, France’s CAC 40 ended down 0.34% and Germany’s DAX settled little changed. Switzerland’s SMI fell 0.67%.

The FTSE gained about 3.6% in March, while CAC 40 and DAX gained 6.5% and nearly 9%, respectively in the month.

Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Netherlands, Poland, Spain, Sweden and Turkey ended weak today, while Denmark, Iceland, Norway, Portugal and Russia closed higher.

In the UK market, shares of food deliver firm Deliveroo slumped 30% on market debut as the takeaway delivery company faces criticism over its treatment of riders.

In economic news, Eurozone consumer Inflation advanced to 1.3% in March, in line with expectations, from 0.9% in February, flash data from Eurostat revealed. This was the third consecutive rise in prices.

France’s consumer prices increased 1.1% year-on-year in March, faster than the 0.6% rise in February largely driven by a rebound in energy prices, preliminary data from the statistical office Insee showed.

The rate came in line with economists’ expectations and was the fastest since February 2020, when prices were up 1.4%.

German unemployment declined in March despite rising infections, data from the Federal Employment Agency showed on Wednesday.

The number of people out of work decreased 8,000 from the previous month, when it was up 9,000. Economists had forecast an annual fall of 3,000. The number of unemployed totaled 2.75 million.

The jobless rate held steady at 6% in March, in line with expectations.

U.K. GDP grew 1.3% sequentially in the fourth quarter instead of +1% estimated initially, the Office for National Statistics said. The economy had expanded sharply by 16.9% in the third quarter.

Over the whole year of 2020, GDP contracted by 9.8%, slightly revised from the first estimate of a 9.9% decline. This was the biggest contraction on record.