The Pan-European STOXX 600 The index closed down 1.4%, although it recorded a second consecutive week of gains.
All major European stock markets suffered heavy losses, except Spain, which closed down 0.2%.
Novo Nordisk fell 5.4% after results from a Phase 2a trial of the Danish drugmaker’s experimental obesity pill monlunabant fell short of market expectations.
The broader health care subsector declined 1.9%.
Automobiles led the declines among the major STOXX sectors, down 3.6%, hurt by a 6.8% drop in Mercedes-Benz which cut its full-year profit margin target for the second time in less than two months. Other industry rivals, including Volkswagen and France’s Forvia, fell 3.4% and 8% respectively. The technology sector was down 2.7%, as shares in Dutch computer chip equipment maker ASML lost 4.2% after Morgan Stanley downgraded its rating on the stock to “equal weight.”
Global stocks rose sharply on Thursday after the Fed on Wednesday began an early round of interest rate cuts with a reduction half a percentage point larger than usual.
“The market is expecting further reductions of a similar amount before the end of the year and, in the absence of an economic crisis, the stage is set for a positive end to the year,” said Richard Hunter, director of markets at Interactive Investor.
In data, UK retail sales rose by a stronger-than-expected 1% in August, with growth in July revised up, while eurozone consumer confidence rose 0.5 points in September from the August figure.
German producer prices fell less than expected in August, declining 0.8% year-on-year versus expectations for a 1% decline.
Among other notable actions, those of Germany DHL fell 4.4% after disappointing first-quarter results from its US rival FedEx.
Burberry fell 3.5% as Jefferies cut its rating on the British fashion company to “underperform” from “hold” and reduced its target price to 490p from 800p.
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