Key Takeaways
- Italy's services sector expanded robustly in October, with its HCOB Services PMI reaching 54.0, significantly above expectations and the previous month.
- The Riksbank maintained its policy rate at 1.750%, as widely anticipated, and indicated that the rate is expected to remain at this level for some time, supported by signs of economic recovery.
- Novo Nordisk (NVO) has agreed to the maximum fair price for its blockbuster drugs Ozempic, Wegovy, and Rybelsus under the U.S. Inflation Reduction Act's Medicare Part D, effective January 2027.
- France's services sector continued to contract in October, though its HCOB Services PMI improved to 48.0, exceeding forecasts.
European economic data presented a mixed picture, with Italy's services sector demonstrating strong growth while France's remained in contraction, albeit with some improvement. The HCOB Services PMI for Italy surged to 54.0 in October, surpassing the estimated 53.0 and September's 52.5. This pushed Italy's HCOB Composite PMI to 53.1, also above expectations of 52.1 and the prior 51.7, signaling a robust expansion.
Conversely, France's HCOB Services PMI for October, while still in contraction territory, showed an improvement to 48.0, better than both the estimated and previous figure of 47.1. The HCOB Composite PMI for France similarly improved to 47.4 from 46.8, suggesting a moderation in the pace of economic decline.
In monetary policy news, the Riksbank held its key policy rate at 1.750%, a decision that was widely expected by markets. The Swedish central bank communicated that the policy rate is anticipated to remain at this level for the foreseeable future, citing new information that supports its forecast of an economy on the path to recovery. The Riksbank noted that the overall outlook for inflation and economic activity remains largely unchanged.
Meanwhile, the pharmaceutical sector saw significant developments regarding drug pricing. Novo Nordisk (NVO) announced its acceptance of the maximum fair price for its popular medications Ozempic, Wegovy, and Rybelsus within the U.S. Medicare Part D program. This agreement, stemming from the Inflation Reduction Act, will become effective in January 2027.
Across the Atlantic, Britain's proposed plan to raise NHS drug prices is reportedly unlikely to influence Eli Lilly (LLY)'s investment decisions in the country, according to a report by POLITICO. This suggests that the UK's pricing strategies may not be sufficient to attract or retain significant pharmaceutical investment from major players like Lilly.
In geopolitical news, an Iranian woman, recently freed by Paris, is reportedly at the Iranian embassy in France. Separately, Iran's Foreign Minister Araqchi stated that two French citizens were released due to 'Islamic clemency' but remain in Iran.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.