Europe midday: Shares crawl higher on US futures

(Sharecast News) - European shares rebounded into the green at lunch on Friday on the back of higher US futures as investors look for positive news amid the rising number of coronavirus cases.
The pan-European Stoxx 600 was flat, with most exchanges higher, bar the UK FTSE 100, which was 0.23% lower. US Dow Jones, Nasdaq and S&P futures were all on the up, with the Dow up 230 points.

Markets started the day in a downbeat mood after the week's early euphoria over a potential Covid-19 vaccine from Pfizer. However, a growing second wave and reality about the timing of any new treatment soon tempered the feelgood factor.

IGH analyst Joshua Mahony said economic instability over the coming months "will likely stifle the market rebound despite the impending vaccine, with today's indecision highlighting that ongoing battle between optimism and the current reality".

"Meanwhile, retail is at risk as we head towards the festive period in lockdown. The surge in European equities appears to have petered out if early trade is anything to go by, with most major indices treading water after the open."

"In the UK, the lack of direction is shown by the huge daily fluctuations in value stocks, as highlighted by the sharp gains for the likes of Rolls-Royce and SSP today.

"In Europe, we are yet to see the curve turn off the back of recent lockdown measures, with retail stocks at risk in the event that the virus forces even more prospective customers into the hands of Amazon. That fear for the high street has led to declines for the likes of Next and Primark-owned ABF, with the ability to release the lockdown shackles in time for the festive period likely to be key for many hard-hit retailers."

Sentiment took a hit from rising coronavirus cases, with the number of people requiring hospitalisation in France rising to a record level on Thursday, while UK infections surged by nearly 50%. In addition, news of a stay at home order in Chicago from Monday and the potential closure of New York schools also weighed on the mood.

In equity news, Italian infrastucture company Atlantia was in the red after a former chief executive was placed under house arrest by judges investigating the Genoa bridge collapse in 2018 that killed 43 people.

French power group EDF after third-quarter revenue fell as the Covid pandemic hit electricity demand and weighed on nuclear energy output in France.