FX.co ★ European Stocks Drop Sharply

European stocks experienced a significant decline on Thursday, in line with major equity markets, amidst concerns about rising global interest rates and new trade barriers with the United States. The Eurozone's STOXX 50 index decreased by 0.6% to 5,435, while the broader pan-European STOXX 600 index fell by 0.7% to 550. The sharp rise in European yields followed robust economic data from the US, which reduced expectations for two more interest rate cuts by the Federal Reserve this year. This exerted pressure on credit-sensitive sectors, with companies like Ferrari, Adidas, Stellantis, and Saint-Gobain seeing a drop of over 2%. Simultaneously, biotech firms faced setbacks as US authorities initiated new national security investigations into the import of medical supplies, robotics, and industrial machinery, leading to drops of over 3% in Siemens Healthineers, Sartorius Stedim, and Philips. However, on a more positive note, H&M saw a substantial 10% increase following a better-than-anticipated third-quarter profit report.