Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

TARIFF RISKS, IS PHARMA OUT OF THE WOODS?

Pharma stocks are seeing relief today after the space got exempted from Trump's reciprocal tariffs, despite building expectations it would have been targeted instead.

Does this mean the sector is out of the woods?

Probably not, according to UBS.

The Swiss bank continues to see an overhang risk as the sector remains in focus for the U.S. administration.

"In President Trump's speech he outlined 'the Pharma companies are coming back (to the US), because if they don't, they got a big tax to pay'. We believe this highlights his continued appetite to effect change in the industry," it says.

UBS analysts see continued overhang risk for drugmakers.

They say the White House could add a separate round of tariffs specifically targeting pharma, or in a less likely worst-case scenario do something with pricing in a tax bill.

"We don't see Pharma being 'out-of-the-woods' yet," they conclude.

For now, however, relief is palpable.

The broader sector in Europe is broadly steady. London-listed GSK GSK.L and AstraZeneca AZN.L, which have big US revenue exposure, both rose around 2% at one point.

Among US players, UBS highlights AbbVie ABBV.N and Merck MRK.N as companies with significant ex-US  manufacturing.

(Danilo Masoni)

*****

EARLIER ON LIVE MARKETS:

DEFENSIVE BUYING LIMITS THE DAMAGE CLICK HERE

EUROPE BEFORE THE BELL: HEAVY SELLOFF COMING CLICK HERE

SEEMS INVESTORS REALLY DON'T LIKE TARIFFS CLICK HERE