European Stocks Slip as U.S. Tariff Uncertainty Grows; Novo Nordisk Shares Tumble

European stock markets traded mixed on Monday as renewed uncertainty over U.S. trade tariffs dampened investor sentiment, while Novo Nordisk shares plunged following disappointing obesity drug trial results. Germany’s DAX fell 0.5% to lead regional losses, the UK’s FTSE 100 edged down 0.1%, and France’s CAC 40 managed a modest 0.1% gain in early trading.

Global equities initially rallied after the U.S. Supreme Court invalidated most of former President Donald Trump’s previously imposed tariffs, ruling that the emergency law used did not authorize such measures. However, Trump quickly introduced a new global tariff plan over the weekend, announcing levies of 10% to 15% that could remain in place for up to five months. The sudden policy shift reignited concerns about trade stability and weighed on overall risk appetite. European Central Bank President Christine Lagarde emphasized the importance of predictable trade rules, noting that uncertainty can disrupt global investment and economic equilibrium.

Recent economic data had supported optimism across Europe. The STOXX 600 index reached record highs last week as Eurozone business activity accelerated faster than expected. Manufacturing returned to growth territory for the first time since October, and Germany’s Ifo business climate index climbed to 88.6 in February, signaling early signs of economic recovery in Europe’s largest economy.

In corporate news, Novo Nordisk stock dropped more than 10% after its experimental obesity treatment CagriSema failed to meet a primary endpoint in a head-to-head trial against Eli Lilly’s Tirzepatide. The setback intensifies competition in the rapidly expanding weight-loss drug market, where Novo’s Wegovy and Ozempic previously dominated.

Meanwhile, oil prices retreated ahead of a third round of U.S.-Iran nuclear talks in Geneva. Brent crude slipped to $70.96 per barrel, while West Texas Intermediate fell to $66.15, as hopes for a diplomatic breakthrough eased supply disruption concerns.