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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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
The pan European STOXX 600 fell 1.2 percent to 539.48 after declining 0.8 percent on Thursday.<\/p>\n
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. <\/p>\n
Pharmaceutical stocks were down across the board, with GSK, AstraZeneca and Novo Nordisk falling 2-5 percent.<\/p>\n
German pharmaceutical and biotechnology company Bayer rose 1.7 percent after raising its 2025 sales forecast. <\/p>\n
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. <\/p>\n
Software firm SAP dropped 2 percent after signing a deal to buy SmartRecruiters, a talent acquisition software provider.<\/p>\n
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.<\/p>\n
Life and health<\/span> insurer Axa plunged 6 percent as first-half profit came in below estimates.<\/p>\n Utility Engie tumbled 3 percent on posting a 9.4 percent fall in half-year earnings. British education company Pearson surged 4 percent after first-half underlying sales and adjusted operating profit topped forecasts. <\/p>\n British Airways owner IAG shed 1.5 percent despite reporting consensus-beating operating profit growth for the second quarter. <\/p>\n<\/p>\n Market Analysis<\/p>\n<\/div>\n
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.<\/p>\n