European shares edged higher on Monday, recovering some ground after a sharp selloff on Friday, while Swiss stocks slumped to their lowest in more than three months as investors digested a hefty 39% U.S. tariff rate.
The pan-European STOXX 600 index rose 0.2% by 0720 GMT, after logging its biggest daily drop in more than three months on Friday. Switzerland’s benchmark SMI index fell 1.5% as trading resumed after a long weekend.
Switzerland could revise its offer to the United States after being hit by a staggering levy late last week that experts warned could trigger a recession, Business Minister Guy Parmelin said.
Swiss pharma stocks Novartis and Roche slipped 1.3% and 2.3%, respectively, after U.S. President Donald Trump sent letters to the leaders of 17 major pharmaceutical companies directing them to slash U.S. prescription drug prices.
Swiss luxury companies Richemont and Swatch, among the most exposed to tariffs, fell more than 1.5% each.
UBS slipped 2.5% after the bank said it would pay $300 million to resolve U.S. mortgage securities cases related to misselling of mortage-linked investments.
Lloyds was a bright spot, gaining 6.3% to the top of the Stoxx 600 index after the UK’s Supreme Court overturned a ruling on motor finance commissions in positive news for banks.
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