EUROPE MARKETS: European Stocks Trim Gains After Trump Comments Send Drug Stocks Lower

01/11/17 12:10 PM EST

By Carla Mozee and Sara Sjolin, MarketWatch

Sainsbury's jumps after Christmas sales numbers

European stocks rose for a second straight day on Wednesday, but with drugmakers capping gains after a late-session selloff following remarks by U.S. President-elect Donald Trump.

The Stoxx Europe 600 ended 0.2% higher at 364.90, adding to a 0.1% advance from Tuesday.

The pan-European index traded as high as 366.37 earlier in the day, but trimmed gains after Trump in his first full-scale press conference since July lashed out at the drug industry. The president-elect said that more bidding is needed on drug prices (http://www.marketwatch.com/story/biotech-etfs-fall-as-trump-says-more-bidding-needed-on-drugs-2017-01-11), implying legislation that could erode the sector's profitability.

"They're getting away with murder," Trump said of drug companies.

Shares of pharmaceutical companies in Europe turned lower after the comments, with Novartis (NOVN.EB) (NOVN.EB) down 1.3%, AstraZeneca PLC (AZN.LN) (AZN.LN) off 1.8% and Sanofi SA (SAN.FR) (SAN.FR) 1.3% lower.

Oil rally: But helping the Stoxx 600 end in positive territory, oil companies climbed as oil jumped almost 2.5%.

Shares of Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) added 1.2%, Total (TOT) (TOT) gained 0.6% and Statoil ASA (STL.OS) picked up 0.6%.

Auto boost: Other gainers included Volkswagen AG (VOW.XE) (VOW.XE), with shares up 3.4% after the German auto maker on Tuesday confirmed that it has agreed to pay $4.3 billion in penalties to the U.S. Justice Department and Customs (http://www.marketwatch.com/story/volkswagen-agrees-43-billion-penalties-with-justice-dept-customs-wsj-2017-01-10-14912334) to settle charges that it used special software to cheat on diesel emissions tests, The Wall Street Journal reported.

Elsewhere in the industry, Daimler AG (DAI.XE) put on 0.8%, Porsche Automobil Holding SE (PAH3.XE) rallied 4% and Renault SA (RNO.FR) gained 0.6%.

Indexes: The U.K.'s FTSE 100 index closed at an all-time high for a 10th straight session (http://www.marketwatch.com/story/ftse-100-fades-pulling-back-from-record-run-of-gains-2017-01-11), marking a its longest string of record closes since FactSet began collecting data in 1986. The benchmark rose 0.2% to 7,290.49.

Germany's DAX 30 closed up 0.5% at 11,646.17 and France's CAC 40 ended marginally higher at 4,888.71.

The euro fetched $1.0525, compared with $1.0560 late Tuesday in New York.

The pound fell to $1.2135, down from $1.2167 late Tuesday, after data showed the U.K.'s trade deficit widened by 2.6 billion pounds ($3.15 billion) to GBP4.2 billion in November, as imports rose faster than exports, the U.K.'s Office for National Statistics said.

Movers: Cobham PLC (COB.LN) tumbled 15% after the technology and services provider warned that 2016 adjusted trading profit (http://www.marketwatch.com/story/cobham-warns-on-profit-pulls-final-dividend-2017-01-11) will be below its previously guided range because of uncertainty surrounding the outcome of the KC-46 tanker program. It also said it won't be declaring a final dividend.

J Sainsbury PLC (SBRY.LN) shares climbed 1% after the U.K.'s second-biggest supermarket chain by market share said its total retail sales, excluding fuel, were up 0.8% in the 15 weeks ended Jan. 7 (http://www.marketwatch.com/story/sainsburys-christmas-sales-rise-marginally-2017-01-11).

Tullow Oil PLC (TLW.LN) fell 1.6% after the oil producer said it is promoting chief operating officer Paul McDade to chief executive (http://www.marketwatch.com/story/tullow-oil-names-paul-mcdade-as-chief-executive-2017-01-11), and that production was in line with expectations for the year ended Dec. 31.

Engie SA (ENGI.FR) fell 3% after the French government said late Tuesday it sold 100 million shares (http://www.marketwatch.com/story/french-state-sells-41-stake-in-engie-2017-01-11) in the French power utility for 1.14 billion euros ($1.2 billion).

 

(END) Dow Jones Newswires

January 11, 2017 12:10 ET (17:10 GMT)

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