Markets reel as Novo Nordisk crash and trade chaos spark global sell-off
Financial markets grappled with a day of perplexity as investor confidence fluctuated. Shares in Novo Nordisk plummeted after disheartening drug trial results, with broader economic worries weighing on global trading. Meanwhile, geopolitical tensions over trade policy contributed to the uncertainty.
Novo Nordisk's stock price plummeted by 15% after its latest drug combination failed to meet market expectations. The drop sent shockwaves through pharmaceutical investors, dragging down related sectors.
The DAX index in Frankfurt closed at 24,991 points, a 1.1% decline from the previous session. Analysts pointed to lingering economic concerns, reinforced by the latest Ifo Index, which suggested Germany's recovery remains sluggish.
Currency markets witnessed shifts as the euro strengthened to $1.1799, while the dollar traded at €0.8475. Bitcoin also fell below the $65,000 threshold, reflecting broader risk aversion among traders.
Oil prices edged up by 0.8%, with Brent crude reaching $72.31 per barrel. Safe-haven assets, including gold, surged in demand, pushing prices up by 2% to $5,211 per ounce (€142 per gram).
The volatility followed a US Supreme Court ruling in late February 2026, which struck down Trump's broad tariffs under the IEEPA. In response, the EU suspended ratification of a planned US-EU trade deal. SPD politician Dirk Wiese called for pausing negotiations entirely, citing legal uncertainty. Trump then announced new 15% global tariffs under alternative legislation, further unsettling markets.
Andreas Lipkow, chief market analyst at CMC Markets, linked the downturn to the trade policy chaos. Investors also held back ahead of upcoming quarterly earnings and potential new statements from the US president on trade.
The day's trading underscored deep unease over economic stability and trade relations. Gold and oil gained as investors sought safer options, while equities and cryptocurrencies faced downward pressure. Markets now await further clarity on policy and corporate performance in the coming weeks.
