Stoxx 600, FTSE, DAX, Fed, PMI data

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

The pan-European Stoxx 600 closed 0.04% lower, snapping a three-session winning run. The U.K.’s FTSE 100 added 0.23% to extend its record high, while the French CAC 40 shed 0.44%. Germany’s DAX closed 0.06% higher.

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.

U.S. President Donald Trump shakes hands with President of the European Commission Ursula von der Leyen as he announces a trade deal with the EU at Trump Turnberry golf club on July 27, 2025 in Turnberry, Scotland. U.S.

U.S. and EU spell out tariffs for autos, pharmaceuticals and more

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, though the Stoxx Europe Pharmaceuticals and Biotechnology index eventually closed 0.56% higher. Top performers in the sector included Danish allergy specialist ALK, up 5%, biotech firm Abivax, up 6%, and Danish pharma giant Novo Nordisk, which gained 3%.

LOS ANGELES, CALIFORNIA - MAY 12: Medications are stored on shelves at a pharmacy on May 12, 2025 in Los Angeles, California. U.S. President Donald Trump today signed an executive order aimed at reducing the cost of prescription drugs and pharmaceuticals by 30% to 80%. Trump announced that his plan to lower drug prices would tie their cost to drug prices paid in foreign nations. (Photo by Eric Thayer/Getty Images)

European pharma secured a U.S. tariff win. Investors remain wary

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.

The Stoxx Europe Automobiles and Parts index closed 0.58% lower as investors reacted to the “conditional” nature of the tariffs reduction for the sector.

U.S., EU release details of trade deal: Here's what to know

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.”