Novartis Plunge Pulls European Markets Lower Amid Inflation Anxiety

The pharmaceutical giant suffered its worst trading session on record after its del-desiran drug trial for myotonic dystrophy failed to meet primary endpoints. This setback follows the recent disappointment surrounding its pelacarsen cholesterol treatment, fueling broader market pessimism. The sell-off hit major benchmarks hard, with Germany's DAX and France's CAC 40 both retreating.

Financial stocks bore the brunt of the downturn, with the banking sector sliding 1.3% as traders weighed the economic consequences of sustained energy price hikes and a looming recessionary outlook. While energy shares managed a modest 0.6% gain in response to Brent crude’s upward trajectory, the overall sentiment remains cautious. Market participants are now pivoting their focus toward forthcoming inflation data and central bank policy announcements for clearer signals on future monetary direction.