European Markets React to U.S. Policy Shifts

European stocks tumbled on Thursday as concerns over new U.S. tariffs on medical technology imports led to a significant drop in healthcare shares. The pan-European STOXX 600 index fell 0.2% amid fears surrounding potential import-related probes initiated by the U.S. Commerce Department.

Danish and Dutch med-tech giants, including Siemens Healthineers, Coloplast, and Philips, saw declines between 2.7% and 4.3%. However, Swedish fashion retailer H&M soared, reporting a third-quarter profit exceeding market expectations, resulting in a 9% increase in its shares.

Investors are keeping a keen eye on the Federal Reserve's upcoming comments and U.S. economic data, such as the second-quarter GDP reading. With multiple Fed officials scheduled to speak, market participants are eager for clues on the central bank's future policy directions.

(With inputs from agencies.)