European shares bounce off three-week lows on financials, industrials boost

European shares bounced back from three-week lows on Friday with a boost from financial and industrial stocks, although the blow to healthcare stocks following US President Donald Trump’s latest tariff salvo kept a lid on gains.

The pan-European STOXX 600 rose 0.3% to 552 points by 0717 GMT.

European insurers were among the early leaders, up 1.2% after falling for the last three sessions. Construction and materials gained 0.8% coming off a near 1.5% drop in the previous session.

Steel stocks Thyssenkrupp and Salzgitter gained 1.3% and 2,6% respectively, after German business daily Handelsblatt reported that the European Commission plans to impose tariffs of 25% to 50% on Chinese steel and related products.

Meanwhile, healthcare stocks dipped 0.2% after Trump unveiled a new round of punishing tariffs, including 100% duties on branded drugs.

He also announced a 25% levies on heavy-duty trucks, dragging the shares of truckmakers Daimler Truck and Traton down over 2% each.

Later in the day, focus would turn to a key inflation reading in the United States that could help assess the Federal Reserve’s policy path.