European Markets Close Mostly Lower

European stocks ended lower on Wednesday, with investors taking some profits after recent strong gains.

Slightly fading euphoria over the passage of a massive coronavirus relief package in the U.S., and uncertainty about whether the U.S. Senate would approve a proposal to increase the size of the stimulus checks rendered the markets sluggish.

The market also reacted to the UK government's announcement regarding plans to introduce stricter coronavirus restrictions in England, as the number of COVID-19 cases continued to increase at record rates.

However, hopes that economic recovery will gain momentum in the coming year thanks to the rollout of coronavirus vaccines helped limit losses.

On the vaccine front, the UK Medicines and Healthcare products Regulatory Agency has approved AstraZeneca's COVID-19 vaccine, co-developed by the University of Oxford, for emergency supply in the UK, with the first doses being released today. The vaccinations may begin early in the New Year.

In the U.S., President Donald Trump continued demanding $2,000 COVID-19 relief checks, instead of $600, and the U.S. House of Representatives voted to approve the measure. However, in the Senate, the move was stalled as Republicans blocked a swift vote proposed by Democrats.

The investor sentiment also reflects the fact that Britian's automatic access to the EU's financial markets may come to an end on December 31 as the Brexit trade deal excludes any pact regarding financial market.

The pan European Stoxx 600 ended 0.34% down. The U.K.'s FTSE 100 slid 0.71%, Germany's DAX shed 0.31% and France's CAC 40 declined 0.22%, while Switzerland's SMI advanced 0.2%.

Among other markets in Europe, Belgium, Czech Republic, Denmark, Finland, Ireland, Netherlands, Poland, Portugal, Spain, Sweden and Ukraine ended weak.

Iceland, Norway, Russia and Turkey closed higher, while Austria and Greece closed flat.

In the German market, Thyssenkrupp gained about 1.7% and Merck advanced 1.5%, while Wirecard, MTU Aero Engines, HeidelbergCement, Lufthansa, Fresenius, BMW and Continental ended notably lower.

In France, Capgemini, Technip, Kering, STMicroElectronics and ArcelorMittal gained 1 to 2.3%. On the other hand, Airbus Group, Air France-KLM, Safran, Sodexo and Publicis Groupe ended notably lower.

In the UK market, Natwest Group, IAG, Legal & General, Ashtead Group, Just Eat Takeaway, Standard Chartered and Tesco closed higher.

Fresnillo, Standard Life, BAE Systems, Schroders, Aveva Gold, Rio Tinto and Compass Group shed 1.6 to 3%.

In economic news, UK house prices grew at a faster pace in December, rising 7.3% year-on-year, following November's 6.5 percent increase, data published by the Nationwide Building Society showed. House price inflation reached a six-year high at the end of the year. On a monthly basis, house price inflation eased slightly to 0.8% from 0.9% in the previous month. The expected rate was 0.4%.

An indicator of future turning points in the Swiss economy improved in December, but continued to signal subdued activity into next year in the backdrop of the coronavirus pandemic, survey data from the KOF Swiss Economic Institute showed.

The KOF Economic Barometer rose to 104.3 from 103.7 in November. Economists had forecast a score of 100.5.

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