Volatility returned to European equities this week, triggered by a fresh round of trade tensions and a wave of earnings disappointments. The headline shock: U.S. President Trump announced new tariffs on imports from 70+ countries, including a 15% blanket tariff on EU goods. The result? A broad-based sell-off across major indices.
🇩🇰 Novo Nordisk – From Darling to Drag
Novo Nordisk shares crashed 33% this week after the company cut its full-year sales growth guidance to 8–14% (from 13–21%).
The downgrade was driven by slowing demand for its GLP-1 drugs (Ozempic, Wegovy) and rising competition from compounders.
Despite strong H1 results (sales +18%, operating profit +29%), the guidance cut sent shockwaves through the pharma sector.
🇩🇪 Germany – Tariffs Bite, Autos Bleed
Germany took the brunt of the hit. The DAX (DE40) dropped to 23,426, down 3.3% for the week—its worst weekly performance since April.
Daimler Truck collapsed over 8% after slashing its full-year outlook.
Siemens, Heidelberg Materials, Porsche AG, Siemens Energy, Airbus, Allianz, and Volkswagen all fell between 3–5%.
The combination of U.S. tariffs, a weak U.S. jobs report, and deteriorating macro sentiment triggered broad selling.
Germany’s export-heavy economy remains highly exposed to geopolitical shocks. Investors are starting to price in a tougher second half.
🇫🇷 France – Earnings Misses and Margin Worries
The CAC 40 closed at 7,546, down 4.1% for the week, hitting a one-month low.
Teleperformance cratered 20.7% after cutting guidance.
Axa fell 7.9%, and Saint-Gobain dropped 9.3%.
Even Schneider Electric, which posted record revenues, saw its stock decline due to margin concerns.
The new U.S. tariffs soured sentiment, despite Europe dodging even harsher measures. France’s large-cap names are struggling to justify their valuations.
🇬🇧 United Kingdom – Resilient, But Not Immune
The FTSE 100 held up better than its continental peers, thanks to early-week strength in mining and banking stocks. However, gains were capped by the tariff news and lingering macro uncertainty. Investors remain cautious, with defensive positioning dominating flows.
🇨🇭 Switzerland – Broad Declines Despite Select Strength
Swiss stocks faced broad-based declines this week, with notable weakness in:
Tech (-3.7%)
Consumer Discretionary (-4.4%)
Materials (-3.3%)
The SMI index pulled back, as sector laggards outnumbered gainers. While a few names managed to buck the trend:
Novartis rose +1.4%
ABB gained +0.7%
Accelleron jumped +5.9%
…these moves weren’t enough to offset wider losses across the board.
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