European shares end flat as healthcare stocks weigh after Trump's tariff threat
The pan-European STOXX 600 (.STOXX), opens new tab index closed 0.06% lower, breaking its two-day winning streak despite starting the session on a positive note.
Healthcare stocks bore the brunt of the selling pressure. The sector index (.SXDP), opens new tab plunged 2.8% to its lowest level in more than three months after Trump unveiled a graduated tariff plan targeting pharmaceutical imports that could see levies on the sector jump up to 250% within 18 months.
"This is where it's important to be specific about tariffs because certain stocks and sectors will be impacted differently across regions," said Steve Sosnick, chief market analyst at Interactive Brokers.
"In Europe and Asia, investors are considering tariff impacts more carefully since exporters bear much of the brunt directly."
The sector was also singed as Novo Nordisk (NOVOb.CO), opens new tab warned it expects continued competition from copycat versions of its Wegovy obesity drug this year, a message that sent shares of the Danish drug maker down 5.4%.
Novo cut its full-year sales and profit forecasts last week, wiping $95 billion off its market value since then.
Meanwhile, Swiss President Karin Keller-Sutter met with U.S. Secretary of State Marco Rubio to discuss potential trade solutions after Trump announced a 39% tariff on Swiss goods.
The talks focused on increasing Swiss purchases of U.S. energy and defence products to avert the steep tariff, which threatens significant damage to Switzerland's export-driven economy.
Switzerland's benchmark SMI index (.SSMI), opens new tab fell 0.9%, weighed down by drugmakers Novartis (NOVN.S), opens new tab and Roche (ROG.S), opens new tab which lost 3.3% and 2.6%, respectively.
Bayer (BAYGn.DE), opens new tab shares tumbled 9.9% on investor concerns that the German pharmaceutical firm's earnings were inflated by soccer player transfer fees rather than supported by its core healthcare and agriculture businesses.
On the data front, Euro zone retail sales grew quicker than thought in June, reinforcing views that the 27-nation bloc remains resilient to trade uncertainty.
Among others, Beiersdorf (BEIG.DE), opens new tab fell 8.4% and was among top decliners after the German consumer goods maker cut its annual organic sales growth outlook.
On the flip side, Siemens Energy (ENR1n.DE), opens new tab rose 1% after the company said it expects to hit the upper end of its 2025 growth outlook estimates.
Hiscox (HSX.L), opens new tab was the top gainer on the index, gaining 9.4% after reporting a rise in first-half insurance premiums supported by its retail business growth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
.jpg%3Ftrim%3D0%2C0%2C0%2C0%26width%3D1200%26height%3D800%26crop%3D1200%3A800&w=3840&q=100)
The Independent
18 minutes ago
- The Independent
Why Trump is threatening to double India's tariffs
Donald Trump signed an executive order imposing a 50% tariff on Indian imports, citing India 's purchase of Russian oil This action has been criticised by India's opposition and public as 'bullying', with analysts warning it could undo two decades of diplomatic progress between the two nations. India has accused the US of double standards regarding Russian imports and vowed to protect its national interests, despite concerns that further escalation could harm it beyond trade. Analysts suggest the relationship is at its worst point since 1998, with India facing pressure to reduce Russian oil purchases without appearing to surrender to Trump's demands. Indian government sources indicate a need to gradually repair ties with the US while increasing engagement with the BRICS bloc and other nations affected by Trump's tariffs and aid cuts.
Reuters
18 minutes ago
- Reuters
Trump says he could impose more tariffs on China, similar to India duties, over Russian oil
WASHINGTON, Aug 6 (Reuters) - U.S. President Donald Trump on Wednesday said he could announce further tariffs on China similar to the 25% duties announced earlier on India over its purchases of Russian oil, depending on what happens. "Could happen," Trump told reporters, after saying he expected to announce more secondary sanctions aimed at pressuring Russia to end its war in Ukraine. He gave no further details. "It may happen ... I can't tell you yet," Trump said. "We did it with India. We're doing it probably with a couple of others. One of them could be China." Trump on Wednesday imposed an additional 25% tariff on Indian goods, on top of a 25% tariff announced previously, citing its continued purchases of Russian oil. The White House order did not mention China, which is another big purchaser of Russian oil. Last week, U.S. Treasury Secretary Scott Bessent warned China that it could also face new tariffs if it continued buying Russian oil.
Daily Mail
18 minutes ago
- Daily Mail
JD Vance ridicules CNN 'fake news' on secret Jeffrey Epstein strategy meeting and says they need 'better sources'
Vice President JD Vance denied Wednesday that he would host a meeting to discuss the administration's response to the Jeffrey Epstein files, ridiculing a CNN report that reported details of the planned event as 'fake news.' The vice president was specifically asked to address the report by President Donald Trump during an event in the Oval Office. 'I saw the report today, and it's completely fake news, we are not meeting to talk about the Epstein situation,' Vance replied. 'I think the reporter who reported it needs to get better sources.' Trump described the whole Epstein controversy as a 'hoax' that was 'put out by the Democrats ' to distract from his administration's success. 'That's just a way of trying to divert attention to something that's total bulls*it,' the president added. CNN reported that Vance was hosting a meeting Wednesday evening to discuss the Epstein files that would include White House chief of staff Susie Wiles, Attorney General Pam Bondi, FBI Director Kash Patel and Deputy Attorney General Todd Blanche. The report was bylined by five different CNN reporters citing 'three sources familiar' with details of the event. The vice president's office denied the scheduled meeting after the CNN report was published Wednesday morning. 'The CNN story is pure fiction,' William Martin, Communications Director to the Vice President told the Daily Mail. 'There was never a supposed meeting scheduled at the Vice President's residence to discuss Epstein Strategy.' The White House did not respond to a Daily Mail request for comment. The vice president has been working behind the scenes to get Bondi and Patel on the same page, but is not specifically leading the administration's response to Epstein. A second source close to the FBI told the Daily Mail that Vance likely sees the Epstein files as a possible liability for his all-but-certain run for president in 2028, 'so trying to distance himself from the mishaps but also be part of the solution' is important to him. Blanche recently spent nine-hours meeting with Ghislaine Maxwell to discuss the case. Maxwell, Epstein's ex-girlfriend and business associate was was convicted of sex trafficking and sentenced to 20 years in prison in 2022. During the meeting, Maxwell told Blanche that Trump never did anything harmful in her presence according to sources speaking to ABC News. Administration officials are weighing whether to release transcripts of the interviews, but have not made a decision. Maxwell was transported from a federal prison in Tallahassee, Florida after her meeting with Blanche to a more relaxed security prison in Texas. Maxwell's attorney said after the meeting that she 'didn't hold anything back' in the interview, and spoke about 'one hundred' different people in the case. President Trump said he was unaware of Maxwell's transfer but described it as routine. 'I didn't know about it at all. I read about it just like you did,' he told reporters on Tuesday. 'It's not a very uncommon thing.' Trump has not ruled out a pardon for Maxwell. The family of Virginia Roberts Giuffre, a survivor of Epstein's abuse, issued a statement calling for the adminstration to meet with 'any survivor of the vicious crimes of convicted perjurer and sex trafficker Ghislaine Maxwell and Jeffrey Epstein.' 'Their voices must be heard, above all. We also call upon the House subcommittee to invite survivors to testify,' Sky and Amanda Roberts said in a joint statement with Danny and Lanette Wilson. Giuffre died in April 2025, as the cause of death was ruled a suicide. 'Any information that may be released by the government should take into account the survivors who wish to remain anonymous, for their safety and well-being. They should be consulted first,' the family members concluded. Democrats were quick to target Vance's role in the controversy, given that he once was a vocal proponent of releasing all the documents related to the deceased pedophile. 'The Epstein files coverup is happening before our eyes and the entire Trump White House is complicit including JD Vance who at one point tried to distance himself from it all,' said Tommy Vietor, the former Obama national security official and current podcast host. The Trump administration continues to weigh their response to the controversy that began a month ago after the Department of Justice released a memo that said Epstein did not have a 'client list' that could be released and that there was no evidence of foul play in Epstein's death in prison, after it was ruled a suicide. Vance last addressed the administration's handling of the files, denying that the they were 'shielding' Epstein and his clients. 'We're not shielding anything,' the vice president told a reporter who asked him about protestors in Ohio. 'The president has directed the attorney general to release all credible information and frankly to go and find additional credible information related to the Jeffrey Epstein case.' Vance has defended Bondi for her handling of the case, even as prominent Trump allies have blamed her for the tone-deaf handling of the case. 'I know, because I talk to her all the time, the attorney general is hard at work on that now,' Vance said. Vance insisted that Trump had 'nothing to hide' in the Epstein files and predicted more details about the Epstein case in the coming days.
