European Stocks Slide: Market Reaction to Trump's Tariffs
European stocks fell to a three-week low, driven by concern over new U.S. tariffs affecting multiple countries, including Switzerland. Healthcare stocks were hit as President Trump demanded pharmaceutical companies reduce drug prices. The STOXX 600 index and other major indices saw declines amidst investor apprehension about the trade deal deadline.
European stocks reached a three-week low on Friday, shaken by investor fears over new U.S. tariffs impacting a range of countries, notably a 39% rate on Switzerland. The decrease followed a busy week in which external economic pressures escalated.
Healthcare stocks took a beating, dropping 1.3%, as U.S. President Donald Trump issued letters to 17 major pharmaceutical companies, including Novo Nordisk and Sanofi, urging them to cut U.S. prescription drug prices. Novo Nordisk saw a 4.2% drop, hitting an almost three-year low, while Sanofi fell by 1%.
The pan-European STOXX 600 index experienced an almost 1% decline by 0720 GMT, continuing its downward trajectory for the third consecutive session and slated to close the week in negative territory. The plunge was exacerbated by a record drop in Novo Nordisk shares and concerns over the implications of the evolving U.S.-EU trade deal.
(With inputs from agencies.)
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