European shares dip as higher crude revives inflation worries; Novartis drags
European shares edged lower on Tuesday as rising oil prices fuelled inflation worries and supply concerns over a prolonged Middle East conflict, while Novartis came under pressure after reporting its second drug development setback. The pan-European STOXX 600 was down 0.2% at 648.41 points by 0705 GMT. Germany’s DAX shed 0.3%, London’s FTSE was flat and France’s CAC 40 slipped 0.4%, following a…
European equities slid on Tuesday amid rising crude oil prices that reignited concerns over inflation and the potential impact of a prolonged conflict in the Middle East on global supply chains. The pan-European STOXX 600 index fell by 0.2% to 648.41 points at 0705 GMT. Germany's DAX declined 0.3%, the London FTSE remained unchanged, while France's CAC 40 dropped 0.4%. The market's cautious tone mirrored the relatively flat performance of Monday's trading, which was muted by a U.S. public holiday.
Novartis suffered a significant setback, with its shares plunging 8.8% following negative results from late-stage testing of its experimental drug del-desiran for myotonic dystrophy. The disappointments follow another major setback earlier in the week, when Novartis' cholesterol drug pelacarsen failed to show positive results in a late-stage trial.
Oil prices surged, with Brent crude futures reaching $98.5 per barrel after Iran issued a stern warning that it would retaliate against any new attacks by potentially targeting energy infrastructure in the Gulf, including U.S. oil and gas assets.
Among individual stocks, Sandoz rose 2.9% after the Swiss pharmaceutical company announced plans to more than double net sales from 2025 to 2035. Poste Italiane sweetened its takeover bid for Telecom Italia to strengthen its position in securing control of Italy's former phone monopoly, with Poste shares slipping 0.2%.
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