European markets close higher on U.S. rate cut optimism; Bayer shares jumped 10%
European stocks started the new trading week on a positive note, following their global counterparts higher as hopes resurface for a Fed rate cut in December.
The pan-European Stoxx 600 closed the session preliminarily 0.3% higher, with most major bourses and sectors in positive territory.
Bayer AG advanced 10.9% to lead Monday’s gainers after the German pharmaceutical and biotech company reported positive efficacy data from the Phase III study of its blood thinner Asundexian, a stroke prevention drug.
Novo Nordisk, in contrast, plummeted 5.8% on Monday, paring some of its earlier losses, after its semaglutide drug — an active ingredient in the pharma company’s diabetes and obesity treatments Ozempic and Wegovy — failed to meet the main goal in a large-scale trial of a potential Alzheimer’s drug.
AstraZeneca added 0.8% after the London-listed drugmaker said on Friday it will invest $2 billion in its biologic manufacturing plant in Frederick, Maryland as part of a wider $50 billion expansion of its U.S. presence.
Europe’s defense stocks retreated on Monday amid ongoing talks between the U.S. and Ukraine to craft a peace plan, after an initial 28-point proposal was seen as largely pro-Russian and demanding significant concessions from Kyiv.
Rheinmettal was down 5%, as Renk fell 4.4%, Hensoldt lost 4.6% and Saab dropped 5.6%. Overall, the Stoxx 600 Aerospace and Defense Index fell to its lowest level since July, and ended the session 2% lower.
The U.S. said Sunday that there had been progress in talks at the weekend, which were attended by U.S. Secretary of State Marco Rubio, but that no agreement was reached on security guarantees for Ukraine.
Elsewhere, shares in Anglo American were down 0.9% after Australian multinational miner BHP dropped plans for a last-ditch takeover bid for its British rival.
Source : Cnbc.com
