European Stocks Inch Higher, Pharmaceuticals Plunge
European stocks closed mostly higher on Wednesday, loosely holding gains from the first two sessions of the week as markets continued to assess the impact that US tariffs will have on European growth and corporate returns.
The Eurozone's STOXX 50 added 0.2% to 2,63, while the pan-European STOXX 600 eased 0.1% to 541, underperforming due to its higher exposure to the pharmaceutical sector. Pharmaceutical companies closed sharply lower after US President Trump threatened to impose a 250% tariff on imports from the sector, as signaled earlier, and aligned with his rhetoric to lower drug prices.
Sanofi and Merck over 2% each on the news, while Roche, AstraZenca, and Novartis lost between 3.5% and 1% outside the Eurozone. Combined with pessimistic earnings results, drug-maker Bayer sank nearly 10% and Novo Nordisk plunged 5.5% on the weakest growth in four years.
In turn, BBVA and Munich Re added over 1.5% to lead financials, while Airbus jumped 1.5%.
Source : Trading Economics
