The FTSE 100 underperformed its European and Asian counterparts in early trading after Donald Trump unveiled plans to slash prescription drug prices in the US.
London’s blue-chip index rose just 0.4%, compared to a 1.5% gain on France’s CAC 40 and a 1% rise on Germany’s DAX.
AstraZeneca led the decline in London, falling as much as 5.8% and dragging the FTSE lower. The pharmaceutical giant—valued at £153bn—has now lost £16bn in market capitalisation over the past week.
The sell-off was sparked by a late-night post from Mr Trump on Truth Social, in which he pledged to sign an executive order tying US drug prices to the lowest available globally—a move he claimed would cut domestic prices by up to 80%.
The announcement rattled European pharmaceutical stocks more broadly. Shares in Denmark’s Novo Nordisk, Europe’s most valuable company, tumbled 8.6%, while France’s Sanofi dropped 6.4%.
“European markets are riding with joy… except for the FTSE 100,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “The index is under pressure due to its heavy exposure to pharmaceutical firms.”
“These companies had believed they were relatively protected from US tariffs, but the latest shift signals new pressure on revenues from US sales,” she added.
Despite the drag from healthcare stocks, the FTSE 100 remained in positive territory thanks to strong gains from companies with exposure to China. Banks including Standard Chartered and HSBC rallied 7.5% and 4% respectively, buoyed by easing trade tensions between Washington and Beijing.
