European stocks traded mixed on Wednesday, with health-care and retail companies weighing on the index, but gains materializing elsewhere.
Investors struggled to brush aside fresh trade concerns, which kept the broader market in check.
What are markets doing?The Stoxx Europe 600 SXXP, -0.19% was up less than 0.1% at 390.15, after finishing Tuesday’s session up 0.5%, marking its best close since late July.
The pan-European gauge is on pace for a rise of about 0.3% so far this week, with gains since Monday putting the index in positive territory for the year.
Germany’s DAX 30 DAX, +0.01% was flat at 12,647.14, while France’s CAC 40 PX1, -0.17% was off 0.1% to 5,512.26. The U.K.’s FTSE 100 UKX, +0.74% rose 0.6% at 7,768.11 as the British pound GBPUSD, -0.5179% hit a one-year low against the dollar, falling to $1.2868, compared with $1.2938 late Tuesday, down 0.5%.
The euro EURUSD, -0.0345% edged lower to $1.1583, versus $1.16 late Tuesday in New York.
A weaker currency can help lift sales and revenue for companies doing business outside of Europe.
What is driving the market?Heavyweight health-care companies and retail companies weighed on stocks, with the Stoxx 600’s biggest weighted company, Denmark-based Novo Nordisk AS NOVOB, -6.10% NVO, -5.55% beating forecasts with its second-quarter earnings, but warned on intensifying competition and price pressures going forward. Shares fell 4.4%.
Also in that sector, Roche Holdings Ltd. ROG, -1.67% fell 1.3%, and H. Lundbeck AS LUN, -12.96% was the biggest decliner in Europe, with shares off 14% after the pharmaceutical group’s adjusted profit reportedly fell short of expectations.
Among retailers, Dutch group Royal Ahold Delhaize NV AD, -2.02% tumbled 2.6% after posting a 15% gain in net profit, but a fall in U.S. sales.
Also hampering some gains, trade worries returned to haunt investors after the U.S. said Tuesday that it will impose 25% tariffs on another $16 billion in Chinese goods, with that country expected to respond as it has in the past.
Read: Trade-war tracker: Here are the new levies, imposed and threatened
Don’t miss: A top London startup’s CEO flags the biggest Brexit threat to his industry
What are strategists saying?In Europe, shares “could remain pressured as U.S.–China trade tensions encourage market players to adopt a guarded approach to riskier assets,” said Lukman Otunuga, research analyst at FXTM, in a note.
Other stock moversShares of Lanxess AG LXS, +4.52% shot up over 5% after news that the specialty-chemical group will sell its 50% stake in a Arlanxeo synthetic-rubber joint venture to Saudi Arabian Oil Co. for around €1.4 billion euros ($1.62 billion).
Shares ABN Amro Group NV ABN, +3.47% jumped nearly 4% after the Dutch bank posted a profit fall.
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