FX.co ★ European Stocks Hit Records on Pharma Gains

The STOXX 50 index surged to a record high of 5,570 points on Wednesday, while the wider STOXX 600 also reached a new peak at 564 points, propelled by a significant rise in pharmaceutical stocks. This uptick followed reassuring news that US President Donald Trump’s proposed 100% tariffs on branded medications might not be as severe as initially anticipated. This comes after Pfizer successfully negotiated with the Trump administration, allowing patients to access discounted prescription drugs via a newly launched federal website. Key players in the pharmaceutical sector led this advance: France’s Sanofi saw a 6% increase, Germany’s Bayer rose by 3.7%, Switzerland’s Roche soared 8%, Denmark’s Novo Nordisk climbed 5%, and Swiss counterpart Novartis grew by over 3%. In parallel, investors considered the Eurozone inflation data which reported a 2.2% rate for September, aligning with predictions, and the latest US ADP employment report that indicated an unexpected decline in private-sector jobs. This data reinforced market expectations of additional interest rate cuts by the Federal Reserve.