U.S. Government Scores First Drug Price Cut Deal with Pfizer, European Markets Mixed
The U.S. government has reached its first agreement with Pfizer to lower drug prices, while European markets experienced a mixed day of trading, with some sectors posting strong gains.
In a significant move, the U.S. government agreed with Pfizer to reduce drug prices in exchange for tariff relief. This is the first such agreement, marking a shift in the U.S. government's approach to pharmaceutical pricing.
Meanwhile, European markets saw a mixed day of trading. The Swiss SMI and the British FTSE 100 both closed higher, up 2.07 percent and 1.03 percent respectively. The EuroStoxx also gained 0.93 percent, reaching a new high just over 5,590 points. Strong performances from Roche and Novartis drove the Swiss index, while Astrazeneca, GSK, and Hikma Pharma boosted the FTSE 100.
Nike's strong quarterly report had a ripple effect across the Atlantic, with European sportswear competitors Adidas and JD Sports gaining 4.0 percent and 6.8 percent respectively. In the steel sector, stocks like Primus ArcelorMittal benefited from potential protection from foreign imports, with shares gaining 5.3 percent.
However, not all sectors performed well. Engie, for instance, saw a 2.2 percent gain after being upgraded to 'Buy' by Bank of America, while Sanofi led the EuroStoxx gains with an 8.4 percent increase, followed by Argenx at 7.2 percent and Bayer with a 5.00 percent gain.
The U.S. government's drug pricing agreement with Pfizer could set a precedent for future negotiations. In Europe, while some sectors like pharmaceuticals and steel saw significant gains, the overall market performance was mixed. The U.S. government shutdown continues to pose a potential source of market uncertainty.
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