Key Takeaways
- European shares declined on Tuesday amid inflation concerns and Novartis' drug development failures.
- Oil prices rose to $98.5 per barrel, fueling worries over supply and Middle East conflicts.
- Novartis shares dropped 8.8% after two consecutive drug development setbacks.
European shares experienced a downturn on Tuesday, with the pan-European STOXX 600 index falling 0.2% to 648.41 points by 0705 GMT.
The decline was driven by rising oil prices, which climbed to $98.5 per barrel, as Iran threatened retaliation against potential attacks on its energy infrastructure, including US interests.
Supply concerns over a prolonged Middle East conflict further exacerbated inflation worries, contributing to the market's downward trend.
Germany’s DAX index fell 0.3%, London’s FTSE remained unchanged, and France’s CAC 40 dropped 0.4%, reflecting a relatively subdued session on Monday due to a US public holiday.
Novartis faced significant pressure, with its shares plunging 8.8% after the Swiss drugmaker announced that late-stage testing of the del-desiran drug for myotonic dystrophy failed to meet its primary endpoint.
This setback followed another closely watched failure, as Novartis' experimental cholesterol drug pelacarsen did not deliver positive results in a late-stage trial.
Among individual movers, Sandoz saw a 2.9% increase, as the Swiss pharma firm set a target to more than double net sales from 2025 to 2035.
Poste Italiane sweetened its takeover offer for Telecom Italia, aiming to secure control of Italy’s former phone monopoly, but its shares declined 0.2%.
