Stoxx 600, FTSE, DAX, Fed, PMI data

LONDON — European stocks lost ground on Thursday after officials unveiled new details on the trade deal between the U.S. and the European Union.

By 1 p.m. in London (8 a.m. ET), the pan-European Stoxx 600 was down 0.4%. The U.K.’s FTSE 100 was 0.2% lower after notching a second straight record closing high, while the French CAC 40 shed 0.7% and Germany’s DAX dipped 0.3%.

In an agreement reached last month, the EU said it would spend $750 billion on U.S. energy and invest a minimum of $600 billion in the United States — in exchange, blanket tariffs on its goods were set at 15% instead of the 30% rate threatened by U.S. President Donald Trump.

However, in-depth details on how certain European industries would be impacted by the agreement were not revealed until Thursday.

Pharmaceuticals exported from the EU to the U.S. will see tariffs capped at 15%, Thursday’s announcement showed. Trump had previously suggested tariffs on the sector could be hiked as high as 250%.  

The immediate reaction among pharma stocks listed in Europe was somewhat muted, with the Stoxx Europe Pharmaceuticals and Biotechnology index paring earlier losses to trade flat. Top performers in the sector included Danish allergy specialist ALK, up 6%, dermatology and skincare manufacturer Galderma, up 1.9%, and Danish pharma giant Novo Nordisk, which gained 1.2%.

It was also confirmed on Thursday that the EU’s autos sector will be subject to 15% tariffs. However, officials revealed that this tariff rate — almost half the current rate — would only come into effect after Brussels introduced legislation to lower its industrial duties.

Autos stocks pared some earlier losses immediately after the news, but the Stoxx Europe Automobiles and Parts index moved lower again shortly after the initial rally. By 12:48 p.m. in London (7:48 a.m. ET), the index was 0.7% lower as investors reacted to the “conditional” nature of the tariffs reduction for the sector.

Michael Field, chief equity strategist at Morningstar, told CNBC on Thursday that autos stocks could soon respond more notably to the trade agreement.

“Stocks haven’t responded as expected to greater clarity from this trade deal,” he said. “This could be due to the level of market noise we are seeing. There is a lot happening in markets, but this news is a positive and should gradually get priced in once the markets’ attention shifts.”

Looking at individual stocks, British retailer WH Smith plummeted 40.5% after the company revised its guidance for North America.

Ahead of the end of its fiscal year, WH Smith said it had identified a £30 million ($40.35 million) “overstatement” of anticipated headline trading profit in its North America branch.

“WHSmith now expects Headline trading profit from the North America division for the financial year ending 31 August 2025 to be approximately £25m, down from previous market expectations of approximately £55m,” the company said in a statement on Thursday morning.

Meanwhile, shares of ticketing giant CTS Eventim tumbled 17.5% on Thursday, making it the worst performer on the Stoxx 600. The company reported record first-half revenue, but said its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) fell 8.9% year-on-year in the second quarter of the year. The company’s live entertainment segment meanwhile reported a 39.7% drop in adjusted EBITDA in the second quarter.  

At the other end of the index, Aegon gained 6.6% after the company reported a first-half net profit of 606 million euros ($706.4 million), reversing course from the loss of 65 million euros it posted during the same period a year earlier.

— CNBC’s Sam Meredith, Sophie Kiderlin and Karen Gilchrist contributed to this report.