12.05.202511:02 Forex Analysis & Reviews: Hope for Trade Peace: How US-China Talks Have Rocked European Stock Exchanges

Despite the overall positive mood, both delegations have yet to disclose the details of the agreement, promising to share more information on Monday. Meanwhile, markets have already responded to the positive sentiment of the parties, which has become a powerful driver for the growth of quotes across the European region.

The threat of regulations has hit the industry: European pharma giants are losing ground

The start of trading in Europe on Monday was unsuccessful for the pharmaceutical sector: the shares of leading drug manufacturers went down after the resonant statement of former US President Donald Trump. The politician promised to sign a decree aimed at significantly reducing the prices of prescription drugs - a step that the markets perceived as a direct threat to the industry's revenue.

Quotes of giants such as Novo Nordisk, AstraZeneca, GSK and Swiss Roche fell by 1-5% on the Frankfurt Stock Exchange. This decline contrasted sharply with the moderate growth of futures on the broad STOXX index, which indicates a selective reaction of investors aimed specifically at the healthcare sector.

Competitive Blow: US Eli Lilly Challenges Danish Leader

Additional pressure on Novo Nordisk shares came from US Eli Lilly. The company said its Zepbound drug outperformed its Danish rival Wegovy in five key weight loss metrics. The announcement was made on Sunday and backed up by a head-to-head comparison study. As a result, Novo shares fell 6.8%, becoming one of the fastest losers in the STOXX 600 index.

Bright Spot: UniCredit Gains on Positive Report

Amid general negativity in the healthcare sector, UniCredit shares soared 4.1%. Italy's second-largest bank revised its 2025 outlook upward after its quarterly report showed unexpectedly strong profit growth. Investors saw this as a sign of resilience and smart asset management in a turbulent environment.

Asia suffers: Japanese and Indian pharma companies in the red

The pharmaceutical sector also suffered in Asian markets. In Japan, the Tokyo Stock Exchange's pharmaceutical index fell more than 4%, becoming the worst performer among 33 industry sub-indices. Indian pharma companies also suffered similar declines, highlighting the sector's global vulnerability to tighter regulation and increased competition.