Europe midday: Losses extend ahead of Trump tariffs; Health stocks in focus
By Frank Prenesti
Date: Wednesday 02 Apr 2025
(Sharecast News) - European shares extended morning losses on Wednesday as investors held their breath ahead of US President Donald Trump's latest round of tariffs with healthcare stocks in focus on fears the sector could be in his sights.
The pan-regional Stoxx 600 index was down almost 1% at 535. Germany's DAX was down 1.2%. The country's car making industry is bracing for a 25% levy on its exports to the US - a major customer.
Swissquote Bank analyst Ipek Ozkardeskaya said the tariff announcement "could give a fresh direction to global markets, but it would be naive to think that today will mark the end of the tariff shenanigans".
"More likely, it marks the start of another phase of uncertainty and turmoil. The real risk isn't just the tariffs themselves but the constant threat of escalation, reversals, and retaliation. The Federal Reserve is still expected to deliver its next rate cut in June - and not before - but things could change rapidly depending on how much Trump policies will hit the US economy."
Trump has threatened tariffs on every country that exports to the US. The Washington Post reported on Tuesday that he would apply a 20% levy on all goods on what he has nationalistically called "liberation day".
He has already implemented an extra 20% tariff on all Chinese imports and 25% for all steel and aluminium imports. There is also a 10% levy on Canadian energy imports.
Last month he unveiled a 25% tariff on all imported vehicles and, eventually, car parts, which will start taking effect on Thursday.
In equity news, Grifols shares jumped on a report that Canadian investment fund Brookfield had restarted talks on a takeover of the Spanish pharma company.
On the flipside, tariff woes hit other shares in the sector, including Sanofi, Novartis, Roche and Novo Nordisk. The overall Stoxx healthcare index was down 2.43%.
Italian securities regulator Consob approved the document of UniCredit's takeover bid for Italian domestic peer Banco BPM. The offer has been given the go-ahead for tender between April 28 and June 23.
Shares in Svitzer surged by more than a third after Danish shipping giant AP Moller made a cash offer of 9 billion Danish crowns for the towage and marine service provider.
Reporting by Frank Prenesti for Sharecast.com
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