European Markets Sway Amid Healthcare Slumps and US Rate Cut Hopes
European shares seesawed on Friday, with healthcare stocks dragging down the STOXX 600, which fell 0.2%. Novartis dropped 2.6% after a downgrade. Meanwhile, hopes for a US Fed rate cut bolstered markets, with France showing a weekly gain despite political uncertainty. Aerospace and defence sectors rose amid geopolitical tensions.
European stocks experienced volatility on Friday, with the healthcare sector leading the decline. As of 0845 GMT, the STOXX 600 index dipped by 0.2%, primarily driven by a 0.6% slump in healthcare stocks. The decline followed a downgrade of Swiss pharmaceutical giant Novartis by Goldman Sachs, which cited increased generic competition.
Despite the overall downturn, markets maintained optimism with expectations of a US Federal Reserve rate cut next week, following weak US labor data. Portfolio manager Craig Cameron from Templeton Global Equity Group highlighted the potential September rate cut amid ongoing inflation and tariff challenges in the US economy.
France's market showed resilience, setting a weekly gain as investors awaited Fitch's credit rating decision. Aerospace stocks surged amid geopolitical unease. The political climate in France remains tense as the nation appointed its fifth prime minister in two years, despite the looming threat of fiscal policy differences.
(With inputs from agencies.)
Google News