Europe close: Pharma and Tech issues drag on indices
By Alexander Bueso
Date: Friday 15 Nov 2024
(Sharecast News) - Most European equity markets incurred in slight losses on Friday with pharma and technology stocks pacing losses.
"A week of indecision for stock markets is ending on a weaker note following Jerome Powell's unexpected dialling back of dovish rhetoric," said IG chief market analyst Chris Beauchamp.
The pan-European Stoxx 600 index was down 0.77% at 503.12, led by a 2.9% decline in a gauge of Health Care stocks. The technology sector index meanwhile gave back 2.82%.
Trump late on Thursday nominated Robert F. Kennedy Jr, who last year said he believed autism was caused by vaccines and has made a raft of other unsubstantiated statements, to lead the Department of Health and Human Services in his new administration when it takes power next January.
Pharmaceutical stocks such as GSK, Sanofi, Swedish Orphan Biovitrum, UCB, Sartorius Stedim, Zealand Pharma and Roche were all knocked by the news.
In positive news for the sector, shares in Evotec surged 21% as the German drug developer received an €11-per-share offer from Halozyme Therapeutics, valuing the company at about €2bn.
Technology issues were also walloped, after the head of the US central bank said overnight that policymakers need not rush to cut interest rates.
In other equity news, Generali jumped 5% as the Italian insurer posted better-than-expected nine-month profits.
London stocks rallied from morning losses, but still ended in the red, as data showed that economic growth in the UK unexpectedly slowed in the third quarter.
Figures released earlier by the Office for National Statistics showed that gross domestic product expanded by 0.1% during the third quarter, slightly below expectations.
Sentiment was also dampened by the European Commission cutting its economic growth forecast for the eurozone in 2025 and warning that projections could be reduced further in the event of increased protectionist measures - such as the import tariffs proposed by Trump.
Eurozone GDP growth is expected to pick up to 1.3% in 2025, from an estimated 0.8% this year, slightly below the Commission's previous 1.4% forecast.
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