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    European shares recover from three-week lows on financials, industrials boost – Reuters

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    By Amir Orusov,Shashwat Chauhan

    Copyright reuters

    European shares recover from three-week lows on financials, industrials boost - Reuters

    SummaryCompaniesUK’s IHG jumps after JPM double upgradeFocus on US inflation data, due 1230 GMTSTOXX 600 up 0.3%, though set for weekly loss

    Sept 26 (Reuters) – European shares bounced back from three-week lows on Friday with a boost from financial and industrial stocks, while the healthcare sector recouped early losses following U.S. President Donald Trump’s latest tariff salvo on pharmaceutical firms.

    The pan-European STOXX 600 (.STOXX), opens new tab rose 0.3% to 551.8 points by 0851 GMT, although still on track to record a second successive weekly decline.

    Germany’s Munich Re (MUVGn.DE), opens new tab and France’s SCOR (SCOR.PA), opens new tab led gains in European insurer (.SXIP), opens new tab stocks, which jumped 1.3% after a three-day losing streak when it declined 0.5%.

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    Construction and materials (.SXOP), opens new tab gained 0.6%, with Ireland’s Kingspan (KSP.I), opens new tab jumping 2.9% after brokerage Citigroup raised its price target.

    Steel stocks across Europe also gained after German business daily Handelsblatt reported that the European Commission plans to impose tariffs of 25% to 50% on Chinese steel and related products.

    The world’s second-largest steelmaker ArcelorMittal gained 2.7%, while Aperam (APAM.AS), opens new tab rose 2%. Germany’s Thyssenkrupp (TKAG.DE), opens new tab gained 3% and Salzgitter (SZGG.DE), opens new tab jumped 5%.

    TARIFFS BACK IN FOCUS

    Healthcare stocks (.SXDP), opens new tab were flat after earlier losing as much as 0.8%, a day after Trump unveiled a new round of punishing tariffs, including a 100% duty on branded drugs.

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    “It was already priced in,” said Nabil Milali, multi-asset & overlay portfolio manager at Edmond de Rothschild Asset Management in Paris.

    “A lot of investors were expecting these kinds of tariffs and it was partly reflected in valuations in the healthcare sector.”

    The sector is one of the worst performers in Europe so far this year, with a sharp decline in weight-loss drugmaker Novo Nordisk (NOVOb.CO), opens new tab being one of the biggest drags.

    Trump also announced a 25% levy on heavy-duty trucks, dragging the shares of truckmakers Daimler Truck (DTGGe.DE), opens new tab and Traton (8TRA.DE), opens new tab down more than 2% each.

    Later in the day, focus would turn to a key inflation reading in the United States that could help assess the Federal Reserve’s future policy path.

    Markets had been betting on aggressive interest rate cuts by the Fed this year, though strong U.S. economic data have led to some trimming in optimism.

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    Traders currently see about 39 basis points worth of easing by December, compared to more than 40 bps earlier this week, according to data compiled by LSEG.

    Among top-moving stocks, UK’s InterContinental Hotels Group (IHG.L), opens new tab gained 2.4% after J.P.Morgan double upgraded its rating to “overweight” from “underweight”.

    Italian fashion group Brunello Cucinelli (BCU.MI), opens new tab extended Thursday’s losses, rocked by short-seller Morpheus Research’s report. It was last down 5.3%.

    Reporting by Shashwat Chauhan in Bengaluru and Amir Orusov in Gdansk; Editing by Harikrishnan Nair

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