European Healthcare Stocks Surge Amidst Pfizer Deal and Market Fluctuations
European shares saw an uptick, driven primarily by gains in healthcare stocks following Pfizer's clarity-inducing deal with the U.S., despite lingering concerns over potential delays in U.S. job data releases. The STOXX 600 rose, healthcare stocks soared, and other pharma companies saw gains. Meanwhile, technology stocks dipped and euro zone manufacturing contracted.
On Wednesday, European shares advanced as healthcare stocks took the lead, fueled by a U.S.-Pfizer arrangement that offered some clarity amidst wider sector uncertainties. Despite concerns about a potential delay in the release of U.S. jobs data, market sentiment remained positive.
The pan-European STOXX 600 climbed 0.3% by 0903 GMT, marking a fourth straight day of gains, with mixed performances across local markets. While Spain's benchmark index dipped 0.4%, the UK's FTSE 100 soared 0.7%, reaching an all-time high.
Healthcare stocks saw a substantial 3.1% increase, the largest one-day gain since August 2023. This was attributed to Pfizer agreeing to lower drug prices in exchange for tariff relief under the U.S. Medicaid programme. Other pharmaceutical entities, such as Ambu, Sartorius, and AstraZeneca, also witnessed significant gains.
Conversely, technology and real estate stocks saw declines, with the former down 0.6% and the latter 0.8%. The U.S. government shutdown may delay the release of key employment data, affecting the Federal Reserve's economic assessments.
Furthermore, euro zone manufacturing data indicated a return of contraction, with notable drops in France and Germany. Despite this, UK stocks benefited from the healthcare boost.
Inflation in the euro zone increased, primarily due to elevated services prices, suggesting potential interest rate stasis from the ECB. Among other market movements, Tate & Lyle's shares plummeted following profit warnings, while Arcadis gained following a buyback announcement.
Google News