European Stocks Decline Amid Tariff Uncertainty; Novo Nordisk Suffers Sharp Share Price Drop

European Stocks Fall Amid Trade Uncertainty

The Stoxx Europe 600 Index declined 0.5% at the close, following President Donald Trump's latest tariff moves, which have created fresh confusion over the outlook for global trade.

Financial Services, Media, and Travel stocks were among the biggest laggards, along with Trade-Related Sectors, including Autos and Industrials. The Personal Care and Utilities sectors outperformed.

The European Parliament's main political groups announced that they will suspend legislative work on approving the US trade deal, following Trump's response to the US Supreme Court striking down his global tariffs. Trump has imposed a new global levy and vowed to use other powers to maintain his signature tariff policies, with the rate set to increase to 15%.

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Novo Nordisk A/S shares slumped 16% to a 2021 low after its next-generation obesity shot, CagriSema, fell short of Eli Lilly & Co.'s rival blockbuster, tirzepatide, in a trial. Johnson Matthey Plc shares also declined 16% after the chemicals firm agreed to sell Catalyst Technologies to Honeywell International Inc. at a lower price than originally planned.

Key Events to watch this week include Trump's State of the Union Address on Tuesday and Nvidia Corp. results on Wednesday. KBC Securities' head of global equities, Andrea Gabellone, notes that the tariff news adds complexity for investors already grappling with stretched valuations and disruption from artificial intelligence, as well as developments over Iran and potential volatility in Software Stocks.