European Stocks Slip as Novo Faces U.S. Rival; Trump Targets Fed Chief Again
April 22 – European stock markets slipped on Tuesday, weighed down by a sharp drop in shares of Novo Nordisk and renewed criticism of the U.S. Federal Reserve by former President Donald Trump.
Shares of Danish pharmaceutical giant Novo Nordisk plunged 7.9% after U.S. competitor Eli Lilly reported promising results for its new weight-loss and blood sugar treatment, rivaling Novo’s best-selling Ozempic.
The pan-European STOXX 600 index declined 0.6% by mid-morning, as regional markets showed mixed performance. Investor sentiment remained shaky following the Easter holiday, with ongoing trade tensions and Trump’s push for interest rate cuts fueling market uncertainty.
“The global sentiment remains fragile. Although Europe is more stable than the U.S. market, it’s not immune,” said Axel Rudolph, senior analyst at IG Group.
Meanwhile, expectations for European corporate earnings have dimmed. Analysts now forecast a 3% drop in first-quarter profits, worse than earlier projections of a 2.2% decline, according to LSEG IBES.
Elsewhere, Swedish biotech firm Biotage surged 56.2% after KKR announced a $1.22 billion acquisition bid. In Switzerland, insurance firms Helvetia and Baloise gained over 3% each following plans to merge, forming the country’s second-largest insurer.
Investors now await key eurozone economic data, including consumer confidence figures later today and PMI surveys on Wednesday.
