A trader works at CMC Markets, London
The main European stock markets are trending downward on Friday morning, the latest statements by the president of the American Federal Reserve (Fed) having tempered investors' hopes on the pace of the rate cut in the United States in 2025.
The trend is also penalized by the decline in pharmaceutical stocks after the appointment by US President-elect Donald Trump of Robert F. Kennedy Jr, an anti-vaccine figure, to lead the departure of Health.
In Paris, the CAC 40 fell by 0.76% to 7,256.35 points around 08:18 GMT. The Dax in Frankfurt lost 0.63% while the FTSE in London declined by 0.43%.
The pan-European FTSEurofirst 300 index lost 0.73%, the EuroStoxx 50 fell by 0.74% and the Stoxx 600 declined by 0.69%.
Jerome Powell, Chairman of the Fed, explained Thursday evening that the American central bank could take the time to cautiously approach its decisions on interest rates in the face of the resistance of the American economy.
These comments support the hypothesis, which has recently gained ground in financial markets, that the Fed will slow down the pace of its monetary easing next year compared to what was previously anticipated.
These comments also remind us that the consequences of the policies that Donald Trump will pursue are not yet completely known, even if they are widely anticipated to be inflationary.
In terms of values, European vaccine manufacturers suffered the blow after the appointment of Robert F. Kennedy Jr. In Paris, Sanofi lost 3.27% and Valneva lost 4.27%. In London, GSK fell 3.6% and Astrazeneca lost 2.4%.
The European health sector fell by 2.18%.
(Written by Bertrand De Meyer, edited by Blandine Hénault)
