European stocks continue to pullback from 11-month high

European stocks fell on Monday, extending losses for the second straight day, and pulled back from an 11-month high on profit-taking, and the market's risk-off sentiment due to concerns over the rising Covid-19 infections in most parts of the world, in addition to political tensions in Italy.

The Stoxx Europe 600 index fell more than 0.3% as of 11:28 GMT, after it closed lower by 0.8% on Friday, after it hit the highest level since February 2020 at 412.46 points.

Stoxx Europe lost 0.7% during the past week, and posted its first weekly loss in 3 weeks, and the first weekly loss in 2021, due to profit-taking.

The pan European index opened lower today losses for the second straight day, and pulled back from an 11-month high, with most of the major European markets and sectors seeing red.

The utilities sector saw the largest losses in Europe, with a drop of more than 1.1%, as most of its share slumped.

The markets are still focusing on the latest updates about the new Covid-19 strain, after the infection rate increased in most parts of the world, especially in China, the epicenter of the deadly virus.

China reported on Friday the largest daily increase in new Covid-19 cases in more than 10 months, especially after new infections in the northeastern Heilongjiang province tripled.

As for Italy, political tensions are escalating as the fate of the current government is hinging on the results of Parliament's vote on Monday and Tuesday to continue in power.

S&P 500 futures fell 0.5%, after the index closed lower by 0.7% on Friday at Wall Street, in the second straight daily loss, due to profit-taking from its record high of 3,826.69 points.

Back to Europe, the Euro Stoxx 50 index fell 0.4%, France's CAC 40 fell 0.5%, the UK's FTSE 100 fell 0.4%, and Germany's DAX dropped 0.1%.