European Shares Slide On Tariff Worries; Pharma Stocks Slump

(RTTNews) - European stocks fell sharply to hit three-week lows on Friday as investors assessed the potential economic impact of fresh U.S. levies on dozens of countries, including a 39 percent rate on Switzerland.

Pharma stocks were coming under heavy selling pressure after U.S. President Donald Trump asked 17 major global pharmaceutical companies to lower drug prices in the U.S.

In economic releases, flash data from Eurostat showed Eurozone inflation remained at the European Central Bank's 2 percent target last month, bucking expectations of a slight fall.

Eurozone manufacturing moved closer to stabilization in the month, with the HCOB Eurozone Manufacturing PMI coming in at 49.8, up from 49.5 in June.

Elsewhere, U.K. house prices increased 2.4 percent on a yearly basis in July, following June's 2.1 percent increase, Nationwide Building Society said. Prices were expected to climb at a steady pace of 2.1 percent in July.

The pan European STOXX 600 fell 1.2 percent to 539.48 after declining 0.8 percent on Thursday.

The German DAX lost 1.7 percent, France's CAC 40 tumbled 1.8 percent and the U.K.'s FTSE 100 was down 0.7 percent.

Pharmaceutical stocks were down across the board, with GSK, AstraZeneca and Novo Nordisk falling 2-5 percent.

German pharmaceutical and biotechnology company Bayer rose 1.7 percent after raising its 2025 sales forecast.

Daimler Truck Holding slumped 5 percent. The owner of U.S. truck brand Freightliner trimmed its 2025 forecast, citing persisting market weakness in North America.

Software firm SAP dropped 2 percent after signing a deal to buy SmartRecruiters, a talent acquisition software provider.

Saint Gobain, a sustainable construction major, fell 4.3 percent in Paris as it posted a 3.4 percent year-over-year increase in first-half sales at constant currencies.

Life and health insurer Axa plunged 6 percent as first-half profit came in below estimates.

Utility Engie tumbled 3 percent on posting a 9.4 percent fall in half-year earnings. Italian utility Enel declined nearly 2 percent after reporting a 1 percent year-on-year rise in its ordinary core profit in the first half.

British education company Pearson surged 4 percent after first-half underlying sales and adjusted operating profit topped forecasts.

British Airways owner IAG shed 1.5 percent despite reporting consensus-beating operating profit growth for the second quarter.