European shares slip as oil rises; Novartis plunges more than 10%

  • Novartis fell more than 10% after del-desiran and pelacarsen trial setbacks.
  • The STOXX 600 declined 0.6% to about 646 points.
  • Brent crude traded near $98.50 a barrel as investors expected an ECB rate increase.

European shares declined on Tuesday as Brent crude climbed toward $100 a barrel, heightening inflation and recession concerns ahead of the European Central Bank's policy meeting. The STOXX 600 fell 0.6% to about 646 points, while the DAX, CAC 40 and FTSE 100 also retreated. Novartis dropped more than 10%, its steepest one-day decline, after del-desiran failed its primary endpoint in myotonic dystrophy shortly after pelacarsen missed its late-stage clinical goal. Markets broadly expect the ECB to raise borrowing costs by 25 basis points this week. Banking shares fell 1.3%, while energy stocks rose 0.6% as Brent traded near $98.50 a barrel after Iranian threats involving Gulf energy infrastructure.

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