European Stocks Rising on Tech But Virus Fears Capped Gains

European stocks rose in early trade Thursday, November 26, but the gains were limited after sentiment was undermined by the extension of coronavirus-related restrictions in Germany and frustrating economic growth prospects for Britain.

The European Stoxx600 index rose 0.1%, as technology and healthcare sectors led gains. The benchmark halted a four-day streak of gains in the previous session, as investors sold to lock in profits after a rally supported by vaccine hopes.

German Chancellor Angela Merkel said on Wednesday that Germany will extend the restrictions imposed earlier this month to curb the second wave sweeping much of Europe until the twentieth of December, at the very least, as the number of Covid-19 cases remains high.

British stocks with exposure to local conditions stabilized after a wave of selling in the previous session after Finance Minister Rishi Sunak warned that the economy was on its way to shrinking 11.3% this year and revealed plans to borrow sums Britain had not seen in times of peace.

Volumes are expected to be weak in light of the US Thanksgiving holiday.