FX.co ★ European Equities Recover, Pharma Sector Takes the Lead

On Wednesday, the STOXX 50 remained relatively unchanged, whereas the STOXX 600 saw a 0.4% increase, marking an effort to commence Q4 with more stability following a subdued beginning. Pharmaceuticals were at the forefront of the rise, with notable gains from Novo Nordisk (+3.7%), Novartis (+2.4%), AstraZeneca (+6.2%), Roche (+5.1%), and Sanofi (+4.1%), spurred by investor optimism regarding tariffs. This development came after an agreement was reached between Pfizer and the Trump administration, which permits patients to acquire discounted prescription medications via a new federal website. However, the overall market sentiment remained restrained due to ongoing concerns about the US government shutdown. The banking sector underperformed, with declines seen in Unicredit (-1%), Intesa Sanpaolo (-0.6%), BNP Paribas (-0.3%), BBVA (-1%), and Sabadell (-1%). This downturn was affected by a Mexican board member of Sabadell accepting BBVA’s acquisition proposal. In terms of economic data, inflation in the Eurozone increased to 2.2% in September, aligning with expectations and supporting the European Central Bank’s cautious approach regarding additional interest rate cuts.