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LONDON — European stocks lost ground on Thursday after officials unveiled new details on the trade deal between the U.S. and the European Union.
The pan-European Stoxx 600 closed 0.04% lower, snapping a three-session winning run. The U.K.’s FTSE 100 added 0.23% to extend its record high, while the French CAC 40 shed 0.44%. Germany’s DAX closed 0.06% higher.
In an agreement reached last month, the EU said it would spend $750 billion on U.S. energy and invest a minimum of $600 billion in the United States — in exchange, blanket tariffs on its goods were set at 15% instead of the 30% rate threatened by U.S. President Donald Trump.
However, in-depth details on how certain European industries would be impacted by the agreement were not revealed until Thursday.
Pharmaceuticals exported from the EU to the U.S. will see tariffs capped at 15%, Thursday’s announcement showed. Trump had previously suggested tariffs on the sector could be hiked as high as 250%.
The immediate reaction among pharma stocks listed in Europe was somewhat muted, though the Stoxx Europe Pharmaceuticals and Biotechnology index eventually closed 0.56% higher. Top performers in the sector included Danish allergy specialist ALK, up 5%, biotech firm Abivax, up 6%, and Danish pharma giant Novo Nordisk, which gained 3%.
It was also confirmed on Thursday that the EU’s autos sector will be subject to 15% tariffs. However, officials revealed that this tariff rate — almost half the current rate — would only come into effect after Brussels introduced legislation to lower its industrial duties.
The Stoxx Europe Automobiles and Parts index closed 0.58% lower as investors reacted to the “conditional” nature of the tariffs reduction for the sector.
Michael Field, chief equity strategist at Morningstar, told CNBC on Thursday that autos stocks could soon respond more notably to the trade agreement.
“Stocks haven’t responded as expected to greater clarity from this trade deal,” he said. “This could be due to the level of market noise we are seeing. There is a lot happening in markets, but this news is a positive and should gradually get priced in once the markets’ attention shifts.”
WH Smith sells off after accounting blunder
Looking at individual stocks, British retailer WH Smith plummeted 42% after the company revised its guidance for North America.
WH Smith share price
Ahead of the end of its fiscal year, WH Smith said it had identified a £30 million ($40.35 million) “overstatement” of anticipated headline trading profit in its North America branch.
“WHSmith now expects Headline trading profit from the North America division for the financial year ending 31 August 2025 to be approximately £25m, down from previous market expectations of approximately £55m,” the company said in a statement on Thursday morning.
Meanwhile, shares of ticketing giant CTS Eventim tumbled 17% on Thursday. The company reported record first-half revenue, but said its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) fell 8.9% year-on-year in the second quarter of the year. The company’s live entertainment segment meanwhile reported a 39.7% drop in adjusted EBITDA in the second quarter.
— CNBC’s Sam Meredith, Sophie Kiderlin and Karen Gilchrist contributed to this report.
