The FTSE World Europe ex-UK Index returned 2.3% in sterling terms. In contrast with a continuing expansion in manufacturing activity, eurozone survey data suggested further contraction in the service sector in December owing to Covid-19 restrictions. Rising coronavirus infections in eurozone countries such as Germany and the Netherlands weighed on the near-term economic outlook. The European Central Bank raised quantitative easing by €500bn and extended emergency measures to help eurozone banks as it cut eurozone growth forecasts. The EU and UK averted a no-deal Brexit, agreeing to tariff- and quota-free trade in goods. Separately, the EU also unveiled an investment accord with China, removing some of the obstacles hindering investment by EU firms in the country. The European Medicines Agency approved the Pfizer/BioNTech Covid-19 vaccine, enabling coronavirus inoculations to begin across the EU.