European shares are edging mainly higher around midday Wednesday. That’s despite some disappointing earnings reports from pharmaceuticals. Meanwhile, US-China trade problems are also continuing to hamper investor sentiment a little.
By 1155 BST, the EUROSTOXX 600 was 0.04% higher, while the EUROSTOXX 50 was some 0.12% in the green. Regional bourses were also broadly positive during morning trading. The German DAX gained 0.33%, the French CAC moved up 0.13%, however, the Spanish IBEX was down by 0.09%.
As the earnings season continues, some European-based drugs makers reported disappointing figures, earlier Wednesday.
Danish based Novo Nordisk’s sales and profits were broadly in line with expectations. However, it’s 2019 outlook, which included the detail that prices charged in the US would likely be lower than 2018, proved a concern for investors.
Novo Nordisk shares slipped 4.80% to trade at DKK307.40.
Another Danish based pharma firm, Lundbeck shares, were also in the red. While its operating profit was ahead of analysts’ expectations, its decision to narrow its full-year profit outlook wasn’t enough to cheer investors. Plans to expand into the Chinese market also met with uncertainty.
Lundbeck shares fell 13.23% to hit DKK385.00.
US-China trade row continues to weigh
As has been the case for the past few weeks now, the ongoing trade row between the US and China is continuing to weigh on investor sentiment too.
The US confirmed overnight that it will impose even more trade tariffs on Chinese goods imported to the country.
Following a first set of tariffs that came into being during July, the US said it will impose a further $16 billion worth of 25% import taxes on Chinese goods from August 23.
“The Office of the United States Trade Representative (USTR) today released a list of approximately $16 billion worth of imports from China that will be subject to a 25 percent additional tariff as part of the US response to China’s unfair trade practices related to the forced transfer of American technology and intellectual property,” the US said Tuesday.