FTSE 100’s record run ends as pharma stocks slide on new Trump appointment
The FTSE 100’s record run came to an end on Wednesday as pharma stocks slumped on the back of a controversial US regulatory appointment.
The blue-chip index spent the entire session in the red and closed off 0.4 per cent.
Drugmakers GSK and Astrazeneca were among the top fallers, at nearly five per cent and two per cent.
This came after President Donald Trump’s Food and Drug Administration (FDA) appointed vaccine sceptic Vinay Prasad as the next director of the Center for Biologics and Research.
Prasad, a professor of epidemiology and biostatistics at the University of California, previously criticised Covid-19 vaccines and the drug approval criticism.
In 2021, Prasad suggested the national response to the pandemic could trigger a collapse of democracy and invoked the rise of Hitler and the Third Reich in Germany.
Russ Mould, investment director at AJ Bell, said: “Suggestions the US could be set to impose tariffs on pharmaceuticals in the next fortnight, the appointment of vaccine sceptic Vinay Prasad to a key role at the FDA, and a warning from leading player in the sector Novo Nordisk heaped pressure on UK-listed pharma names GSK and AstraZeneca.”
Vodafone’s shares sunk over two per cent after its chief financial officer said he would exit the firm after just 18 months, making him the shortest serving in the FTSE 100 giant’s history.
Pest-control firm Rentokil’s stock dipped one per cent in early trading on the news chief executive Andy Ransom would retire by 2026.
Mould said: “Given Ransom is in the middle of efforts to turn around a struggling North American business, shareholders may not welcome the disruption.”
Meanwhile, the FTSE 250 dipped 0.3 per cent ending a nine day win streak – its best run since 2020. Trainline slumped over five per cent as the firm planned to battle Labour’s rival state-owned service.
FTSE 100 finishes 16-day run
The FTSE 100 secured its 16th consecutive day of gains on Tuesday. Whilst the index began the session in the red, a nail-biting finish saw it scrape a gain of 0.01 per cent to secure its streak.
The rally stemmed from a boost to investor sentiment after Trump retreated on his ‘Liberation Day’ levies.
The President’s sweeping tariffs across the US trading partners sent markets into a blitz as fears of a global trade war escalated.
The FTSE 100 plummeted five per cent as China hit back at the US with retaliatory tariffs.
London markets’ recovery has outpaced its Wall Street counterparts.
Wall Street closed in the red on Tuesday with S&P 500 losing 0.77 per cent and Dow Jones 0.95 per cent.
The tech-heavy Nasdaq was off 0.87 per cent. The index is down 8.25 per cent for the year, after Trump’s erratic trade agenda sent tech giants plummeting.
Shares in Tesla have sunk 27 per cent since January and Apple 19 per cent.
During early trading on Wednesday, the S&P fluctuated between small gains and losses. The Dow was up 0.5 per cent whilst the Nasdaq edged down 0.4 per cent.