European shares falter as coronavirus toll in China jumps

European shares pulled back from record highs on Thursday as a surge in new coronavirus cases in China surprised investors who were hoping that the outbreak had peaked.

The pan-European STOXX 600 index fell 0.4% by 0803 GMT. The index had notched new highs in the last two sessions on optimism over what appeared to be a decline in new cases of infection in China. But a jump in new cases after China deployed a new diagnostic method and a record rise in the death toll swiftly subdued risk appetite.

European sectors with heavy exposure to China, such as basic resources and automobile stocks fell 0.9% and 1.1%, respectively.