European stock markets experienced a drop on Tuesday, continuing the minor declines from the previous day. The main European index, the STOXX 600, was down 0.1%.
However, major country stock exchanges like those in Germany and France were both up slightly, gaining about 0.1% each. Healthcare stocks were the biggest reason for the overall decline, falling 0.3% due to losses in large companies like AstraZeneca and Novo Nordisk.
Despite this, the sector’s losses were contained because the German pharmaceutical firm Bayer surged by about 15%. This jump happened after the U.S. government, led by President Donald Trump’s administration, encouraged the Supreme Court to hear Bayer’s appeal to stop thousands of lawsuits related to its Roundup weed-killer supposedly causing cancer.
Meanwhile, other sectors like consumer discretionary stocks (including luxury goods and car companies) also traded lower. In other news, the market is monitoring a scheduled meeting between President Trump’s special envoy, Steve Witkoff, and his son-in-law Jared Kushner with Russian President Vladimir Putin to discuss a potential ceasefire in Ukraine.
Among individual stocks, FDJ United shares fell 4.2% after J.P. Morgan lowered its rating on the lottery and online game operator. Finally, investors are now looking ahead to the release of preliminary inflation data for the euro zone later today.
On the FX front, the US dollar remained steady on Tuesday, helped by a successful sale of Japanese government debt that reassured investors after a selloff in bonds globally earlier in the week. The dollar went up 0.1% against the Japanese yen, reaching 155.72, after a strong auction of 10-year Japanese government bonds stabilized the bond market.
The overall US dollar index, which measures its strength against other major currencies, saw minor ups and downs but was last trading slightly higher at 99.441, ending a seven-day losing streak.
The euro was holding steady at $1.1610 as peace talks regarding the war in Ukraine continued; European leaders showed strong support for Ukrainian President Volodymyr Zelenskiy, particularly after a previous US-supported peace plan seemed to favor Russia, while a US special envoy traveled to Moscow for more discussions.
The British pound was 0.1% stronger at $1.3217, remaining near its highest level in a month, despite the head of Britain’s fiscal watchdog resigning after his agency accidentally released details of the government’s budget before the Finance Minister announced them.
Finally, the Australian dollar gained 0.2% to 0.6553, and the New Zealand dollar (kiwi) was steady at 0.57264.
Currency Power Balance