STOXX 600 dragged down by med-tech

The pan-European STOXX 600 finished down 0.7%, having hit its lowest level in three weeks earlier in the session

European stocks were dragged down by med-tech shares on Thursday after the U.S. launched new import probes, while investors sifted through comments from Federal Reserve officials and economic data for clues on the central bank’s next move.

The pan-European STOXX 600 finished down 0.7%, having hit its lowest level in three weeks earlier in the session.

Most regional bourses also closed in the red.

Healthcare stocks were the worst sectoral performers, down 1.9%, with German medical technology company Siemens Healthineers slipping 3.4% after the U.S. Commerce Department said it has opened new national security investigations into the import of personal protective equipment, medical items, robotics, and industrial machinery.

Danish medical equipment maker Coloplast and Dutch med-tech company Philips also dropped more than 3% each.

Construction and materials were also among the top declining sub-sectors, down 1.5%, while industrial goods and services slid 0.8%.

Among gainers, Sweden’s H&M climbed 9.8% after the fashion retailer reported a substantially bigger rise than expected in its third-quarter profit.

European miners gained 0.6%, tracking surging copper prices with Shanghai copper hitting a six-month high.

Including Thursday’s moves, the pan-European STOXX 600 was last up 9% so far for the year.

European equities kicked off 2025 on a strong note, buoyed by gains in defence stocks, but have since trailed behind the stock markets of countries such as the U.S., where AI-driven optimism has propelled indexes to record highs this September.

While the U.S. central bank delivered its first rate cut of the year, the European Central Bank (ECB) and Switzerland’s central bank held rates steady. The Swiss National Bank also flagged concerns over U.S. tariffs, warning of a dimmer economic outlook heading into 2026.