European stocks failed to sustain a three-day rally Wednesday as GlaxoSmithKline PLC and AstraZeneca PLC led a retreat by drugmakers. A Democratic-led U.S. House of Representatives could result in lower prices for drugs.
“You could have an environment that is less friendly to corporations,” said Job Curtis at Henderson Global Investors in London. “Democrats are more likely to favor the redistribution of profits.”
The Dow Jones Stoxx 600 index lost 0.1 percent. The Stoxx 50 fell 0.2 percent, while the Euro Stoxx 50, a measure for the nations sharing the euro, added less than 0.1 percent.
ASIAN RUN ENDS: Asian stocks fell from a six-month high after Yamada Denki Co. and CSR Ltd. predicted earnings growth might slow.
“Companies like Yamada reported solid profits, but investors’ expectation were much higher and it resulted in a sell-off,” said Atsushi Osa at Sumitomo Mitsui Asset Management Co. in Tokyo.
The Morgan Stanley Capital International Asia-Pacific index slid 1.1 percent. Japan’s Nikkei 225 index lost 1.1 percent. Australia, Hong Kong, Singapore and Indonesia indexes fell from record levels. Indexes fell in the area except in New Zealand, Thailand and Malaysia.
