iShares MSCI United Kingdom ETF

EWU

Market cap $2.73B

The United States and Britain announced a deal on Monday to secure zero tariffs on British pharmaceutical products and medical technology in return for Britain spending more on medicines and overhauling how it values drugs. Under the agreement, Britain will raise the net price it pays for new US medicines by 25%.

FOX Business White House correspondent Edward Lawrence reports the details of President Donald Trump's pharmaceutical deal with the U.K. on 'Varney & Co.'

European equities eked out a modest gain on Thursday, with the pan-European Stoxx 600 reversing early losses to finish 0.12% higher as investors assessed a shifting global economic landscape, incoming corporate news, and rising expectations of US monetary easing. Germany's DAX led the region's major indices, advancing 0.22% to end the day at 23,777.

The plan presented by the chancellor of the Exchequer, Rachel Reeves, called for spending increases and higher taxes on the wealthy and the middle class.

Finance minister Rachel Reeves said the leak by the government spending watchdog was "deeply disappointing" and a "serious error."

European Union governments and the European Parliament have reached agreement on harmonising the 27-nation bloc's insolvency laws to make it easier to invest across the EU and create a more liquid EU capital market, the EU Council said in a statement.

iShares MSCI United Kingdom ETF (EWU) delivered over 50% total return since late 2023, but now faces an unfavourable outlook. Valuations for EWU have risen, eroding the UK market's risk premium, especially as UK bond yields have risen. UK economic outlook remains bleak, with stagnating GDP, weak corporate sales growth, and policy headwinds likely to persist.

U.S. bond markets were shut for Veterans Day. Meanwhile, eurozone government bond yields edged up on growing optimism the U.S. government shutdown is soon ending.

British investors have pulled a record 7.4 billion pounds ($9.9 billion) from equity funds since June, marking the longest period of consecutive monthly net selling since the Brexit vote in 2016, data from funds network Calastone shows.

European stocks are expected to maintain their positive momentum as an end to the U.S. government shutdown is in sight.