On Wednesday, Europe witnessed various geopolitical and financial market developments.
Investors monitored a potential escalation in Russia-EU tensions, notable gains in pharmaceutical stocks, and market movements in Europe, while security authorities in Germany arrested alleged Hamas operatives.
Russia to nationalize and sell foreign assets
Russia is preparing a mechanism to nationalize and quickly sell foreign-owned assets in response to any European moves to seize Russian holdings abroad, reported Bloomberg.
President Vladimir Putin signed a decree on Tuesday enabling fast-track sales of state-owned companies under a special procedure.
The decree is designed to expedite the sale of both Russian and foreign assets, with state-owned Promsvyazbank PJSC appointed to handle transactions.
Officials indicated that if the European Union proceeds with plans to leverage frozen Russian assets to fund Ukraine, Moscow could retaliate with symmetrical measures.
Hundreds of Western companies—including UniCredit SpA, Raiffeisen Bank International AG, PepsiCo Inc., and Mondelez International Inc.—continue to operate in Russia.
While Russia has largely refrained from fully nationalizing international firms, the decree could accelerate sales of temporarily managed companies at steep discounts.
AstraZeneca stock surges on Pfizer deal
Shares of AstraZeneca plc jumped 11.21% on the London Stock Exchange on Wednesday, closing at £122.42 per share.
The gain followed a US-Pfizer agreement to voluntarily cut drug prices, which included a three-year exemption from pharmaceutical-specific tariffs provided Pfizer continues investing in domestic production.
Pfizer committed an additional $70 billion in US production and research, alleviating market uncertainty and boosting investor confidence in the pharmaceutical sector.
Macron comments on Russia and European security
French President Emmanuel Macron emphasized that shooting down unauthorized Russian fighter jets entering European airspace is “not impossible.”
Macron highlighted Europe’s strategy to keep President Vladimir Putin uncertain and reduce dependency on US support.
He also reaffirmed that sanctions against Russia are effective and voiced support for the European Commission’s proposal to use frozen Russian assets to aid Ukraine’s recovery.
European markets advance
European equities rose on Wednesday amid geopolitical and economic developments.
The CAC 40 increased 0.90%, EURO STOXX 50 advanced 0.99%, the FTSE 100 rose 1.05%, and the DAX jumped 1.08%.
Key drivers included strong performances from pharmaceutical companies, with AstraZeneca surging 11.21% and Sanofi SA climbing 8.44%, while Merck KGaA gained 10.05%.
Currency movements were relatively muted.
The euro traded flat against the US dollar at $1.17288, while the British pound gained 0.24% to $1.34786.
Hamas members arrested in Germany
German authorities arrested three alleged Hamas operatives, two of whom are German citizens, on suspicion of plotting attacks against Israeli and Jewish institutions.
Prosecutors reported that firearms, including an AK-47, several pistols, and a significant quantity of ammunition, were seized during the operation.
The suspects are believed to have acquired weapons for Hamas since at least the summer, with intentions to carry out assassinations targeting Jewish institutions in Germany.
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