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European stocks ended sharply lower on Wednesday as disappointing economic data, rising coronavirus<\/span> cases, tighter lockdown measures and worries about delay in vaccine supplies triggered heavy selling at several counters from across various sectors.<\/p>\n Global coronavirus cases surpassed 100 million, with Europe currently reporting a million new infections about every four days<\/p>\n Investors were looking ahead to the Federal Reserve’s policy announcement, due later in the day, for clues on monetary stimulus in the world’s largest economy<\/span>.<\/p>\n The pan European Stoxx 600 slid 1.16%. The U.K.’s FTSE 100 ended down 1.3%, France’s CAC 40 drifted down 1.16% and Germany’s DAX ended lower by 1.81%, while Switzerland’s SMI lost 0.55%.<\/p>\n Among other markets<\/span> in Europe, Austria, Belgium, Czech Republic, Denmark, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Turkey and Ukraine ended with sharp to moderate losses. Finland bucked the trend and ended modestly higher.<\/p>\n In economic releases, a report from the DIW Institute said the German economy is set to contract in the first quarter due to strict restrictions related to Covid-19 pandemic.<\/p>\n Gross domestic product will contract 3% in the first quarter of 2021 after stagnation in the fourth quarter, the think tank estimated.<\/p>\n The hard lockdown will last until the end of February and then gradually be lifted, Claus Michelsen, an economic director at DIW Institute said. So there is a long and rocky road ahead for the German economy.<\/p>\n A survey from market research group GfK showed German consumer confidence is set to deteriorate in February under the strict lockdown restrictions. GfK said its forward-looking consumer sentiment index dropped 8.1 points to -15.6 in February from -7.5 in January. The expected reading was -7.9.<\/p>\n French consumer confidence index dropped more-than-expected to 92 in January from 95 in December, survey results from the statistical office Insee revealed. The expected level was 94.<\/p>\n U.K. shop prices decreased 2.2% year-on-year in January, after a 1.8% drop in the previous month hit by the renewed Covid-19 lockdown measures, data from the British Retail Consortium showed.<\/p>\n The International Monetary Fund raised its growth forecast for the global economy this year on Tuesday. The IMF now expects the global economy to grow 5.5% in 2021, a 0.3 percentage point increase from October’s forecasts.<\/p>\n In the UK market, Fresnillo tumbled more than 13% after forecasting a fall in gold production. Glencore and Anglo American lost 6.75% and 6.2%, respectively. Evraz, Avast, Aveva Group, Polymetal International, Coca-Cola HBC, Natwest Group, Barclays, Lloyds Banking Group, Rio Tinto, M&G and Standard Chartered lost 2.5 to 5%.<\/p>\n Among the gainers, Pearson shares soared nearly 14%. Hargreaves Lansdown, British Land, Ocado Group, Land Securities, Next and British American Tobacco also ended with strong gains.<\/p>\n In the German market, Thyssenkrupp, Merck, Covestro, Bayer, Deutsche Post, Infineon Technologies, RWE, Deutsche Bank, Daimler, Adidas, Volkswagen and BMW lost 1 to 4%, while Lufthansa gained more than 4%.<\/p>\n In France, ArcelorMittal, BNP Paribas, STMicroElectronics, Saint Gobain, Societe Generale, Credit Agricole, Teleperformance, Sanofi and Michelin ended lower by 2 to 4%.<\/p>\n Unibail Rodamco zoomed 20%. Technip, Air France-KLM, Orange, Thales and Air Liquide gained 1 to 3.5%. <\/p>\n<\/p>\n Market Analysis<\/p>\n<\/div>\n