UPDATE 2-European stocks slip as defensives weigh, UK shrugs off latest lockdown

  • Reuters
  • Stock Market News
UPDATE 2-European stocks slip as defensives weigh, UK shrugs off latest lockdown
Credit: © Reuters.

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* BP , Shell biggest boosts to UK's FTSE 100

* Next jumps after Christmas sales update

* Dialog Semi gains on upbeat Q4 sales forecast

(Updates prices throughout, adds comments)

By Amal S and Shreyashi Sanyal

Jan 5 (Reuters) - European stocks slipped on Tuesday as losses in defensive sectors offset gains in oil and retail stocks, while investors looked past a new national lockdown in Britain aimed at curbing a coronavirus surge.

The pan-European STOXX 600 index .STOXX fell 0.2%, following losses on Wall Street over worries about Senate runoffs in the U.S. state of Georgia.

UK's FTSE 100 .FTSE rose 0.6%, boosted by oil majors Royal Dutch Shell RDSa.L and BP BP.L , as crude prices inched higher with deadlocked talks between major producers about potential changes in February output set to continue. O/R

The domestically focussed midcap index .FTMC gained 0.9% as UK's finance minister Rishi Sunak announced plans to support businesses struggling under a third COVID-19 lockdown. stock market reaction to a new lockdown in England could have been a lot worse, but it is fair to say there were plenty of signs in recent days that full lockdown was coming, such as similar restrictions being announced in Scotland yesterday," said Russ Mould, investment director at AJ Bell.

"Nonetheless, given the severity of the lockdown restrictions... one might have expected a repeat of last year's trends with lockdown losers slumping on the stock market and beneficiaries rallying. That's not entirely the case this time round."

European stocks rallied to fresh February highs on the first trading session in 2021 on Monday on hopes the vaccines will spur a speedy economic rebound.

The global mood dampened on Tuesday ahead of the Senate election outcome, which could have a big impact on incoming U.S. President Joe Biden's ability to pursue his preferred economic policies. MKTS/GLOB

Stocks considered as safe-havens like utilities .SX6P , healthcare .SXDP and food & beverage .SX3P were among the biggest sectoral decliners in Europe.

Germany's DAX index .GDAXI dropped 0.6% with the government looking to extend a lockdown, while France's CAC 40 .FCHI slipped 0.4%. were a bright spot, with Britain's Next NXT.L jumping 8.0% after it said its Christmas sales were much better than expected. in Marks and Spencer MKS.L , Morrisons MRW.L and Tesco TSCO.L rose between 0.2% and 1.2% after market researcher Kantar said British grocery sales hit a record high in December. chipmaker Dialog Semiconductor PLC DLGS.DE gained 2.7% after it gave an upbeat fourth-quarter revenue forecast due to strong demand for 5G phones and tablets. ASML.AS rose 0.2% after analysts at RBC and Liberum raised their price targets on the stock.

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