Defensives drag down European shares from 4-month highs

European shares slipped on Wednesday as investors turned their focus back to earnings reports and a surge in coronavirus cases, after an EU-wide debt deal sent the region's markets to four-month highs in the previous session. The pan-European STOXX 600 was down 0.3% by 0722 GMT, easing from its strongest close since March 5.

European shares slipped on Wednesday as investors turned their focus back to earnings reports and a surge in coronavirus cases after an EU-wide debt deal sent the region's markets to four-month highs in the previous session.

The pan-European STOXX 600 was down 0.3% by 0722 GMT, easing from its strongest close since March 5. Defensive sectors led Europe lower, with healthcare, utilities, and consumer companies among the biggest drags, with media, down 1.0%, falling the most.

Investors took cheer from European Union members reaching a deal on Tuesday over a 750-billion-euro ($864.68 billion) coronavirus recovery fund, while hopes are also high that Washington will deliver a new round of stimulus. Swiss engineering firm ABB Ltd rose 2.4% after saying its order situation could improve in the coming months.

French car parts maker Valeo SA fell about 5% after it swung to a 1.2 billion euro loss in the first half of 2020 after production was hit due to the pandemic.