Europe Stocks Fall to 2-Week Low as Drugmakers, Carmakers Plunge

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Stoxx 600 Closes Lower as Fiat Chrysler Shares Fall

European shares closed at the lowest level since the end of 2016 as automakers dropped the most since July and drugmakers fell on concern they could face more price pressures in the U.S. under Donald Trump’s presidency.

The Stoxx Europe 600 Index fell 0.7 percent at the close. Carmakers retreated 2.8 percent after the U.S. government accused Fiat Chrysler Automobiles NV of using software that allowed excess diesel emissions in about 104,000 vehicles. Health-care shares tumbled the most since November, deepening losses that began late yesterday after Trump said he’d force the industry to bid for government business.

The U.K.’s FTSE 100 Index eked out a gain of less than 0.1 percent to complete 13 straight daily gains, a record streak, as well as an 11th consecutive all-time high.

  • Novo Nordisk A/S and Shire Plc, which count North America as their biggest market, were among the biggest losers in the Stoxx 600 health-care index, tracking losses in U.S. peers yesterday.
  • Fiat Chrysler slid 16 percent. The carmaker denied it has ‘defeat’ software, CNBC reported.
  • Utilities, miners and personal-and-household goods companies were the only industry groups to advance on Thursday.
  • “2016 was a heavily macro driven year, with correlations in performance between stocks, sectors and styles hitting record highs,” Citigroup Inc. analysts wrote in a Thursday note. “Correlations have fallen dramatically, suggesting that stock picking is returning to the fore for 2017.”