06.08.202515:54:39UTC+00European Stocks Inch Higher, Pharmaceuticals Plunge

European stocks ended mostly higher on Wednesday, maintaining gains from the week’s initial trading days as investors continued to evaluate the implications of U.S. tariffs on European economic growth and corporate profitability. The Eurozone's STOXX 50 increased by 0.2% to reach 2,630, while the broader STOXX 600 slightly fell by 0.1% to 541, primarily due to its greater exposure to the pharmaceutical industry. Pharmaceutical companies faced significant declines after U.S. President Trump reiterated his intention to impose a 250% tariff on imports from this sector, consistent with his agenda to reduce drug prices. As a result, shares of Sanofi and Merck fell over 2%, whereas Roche, AstraZeneca, and Novartis saw declines ranging from 3.5% to 1% outside the Eurozone. Combined with disappointing earnings, Bayer’s shares plummeted nearly 10%, and Novo Nordisk experienced a 5.5% drop, marking its weakest growth in four years. Conversely, BBVA and Munich Re rose by more than 1.5% to lead the financial sector, while Airbus advanced by 1.5%.