European shares slip on Brexit, virus worries

European shares dipped on Tuesday, as a post-Brexit trade deal hung in the balance, while rising coronavirus cases spurred talks of stricter restrictions that could cause more economic pain. The pan-European STOXX 600 index slipped 0.1%, while London's FTSE 100, which has been outperforming regional peers in recent sessions, fell 0.4% to lead declines.

European shares dipped on Tuesday, as a post-Brexit trade deal hung in the balance, while rising coronavirus cases spurred talks of stricter restrictions that could cause more economic pain.

The pan-European STOXX 600 index slipped 0.1%, while London's FTSE 100, which has been outperforming regional peers in recent sessions, fell 0.4% to lead declines. After British and EU leaders failed to narrow differences on Monday, they are set to meet face-to-face in last ditch attempts to seal a deal to govern around $1 trillion in annual trade before Britain exits from the bloc at the end of the month.

Meanwhile, as COVID-19 cases continued to rise in Germany, Health Minister Jens Spahn said the government might tighten restrictions to control the spread. A media report said the measures will be discussed this week. Germany had implemented a partial lockdown in November.

The German DAX was down 0.1%.