European Stocks Rebound, Healthcare Sector Leads Gains
European stock markets closed higher on Thursday (June 4), with the Stoxx Europe 600 closing up 0.5% after initially weakening earlier in the session. The healthcare sector led the gains, followed by financial services and retail, while mining and telecommunications were the main drags.
The healthcare sector's gains were supported by Abivax's 18% rally, rebounding after plunging on news of cancer cases in its pivotal clinical trial. Stifel analysts considered the initial market reaction "overblown." Zealand Pharma also rose 9% after Deutsche Bank raised its price target following positive results for its obesity drug candidate survodutide.
Outside of healthcare, Remy Cointreau rose 9.8% after strong growth in the US helped cushion the pressure from weaker demand in Europe and China. Puma also gained after Citigroup upgraded its recommendation to buy, further supporting consumer sentiment.
Despite the gains, European equities lagged behind the rally in the US and Asia, which are more exposed to the AI theme. The Stoxx 600 remains below its February record, while investors are still waiting to see whether profit growth can extend beyond the technology sector in the upcoming reporting season.
Meanwhile, shares of British banks such as Standard Chartered and HSBC weakened after media reports suggested some banks were suspending Hong Kong account openings for mainland Chinese clients, amid increased regulatory scrutiny. European tech was briefly pressured by Broadcom's outlook, but recovered by the end of the session, helping to ease pressure on the overall index. (Arl)
Source: Newsmaker.id
