European Stocks Edge Higher as Novo Nordisk Jumps From 2023 Low
European equities edged higher, boosted by a rebound in Danish drugmaker Novo Nordisk A/S, while investors continue to monitor what the US rates outlook means for the region.
The Stoxx Europe 600 Index ended the session 0.1% higher. Health care stocks outperformed as Novo rallied, recovering from the previous session when it hit levels not seen since August 2023. Meanwhile, the travel and leisure sector slid as Evolution AB slumped after the UK Gambling Commission began a review of its Malta operations.
Direct Line Insurance Group Plc rose after Aviva Plc agreed to buy the insurer in a deal valuing the firm at around £3.7 billion ($4.7 billion).
European stocks are set for a drop in December — a month that’s historically been positive on average for the Stoxx 600 over the past three decades — amid concerns about the path of Federal Reserve policy, the outlook for tariffs from US President-elect Donald Trump and political uncertainty. The Stoxx 600 Index is up just about 5% this year, far behind the S&P 500 Index’s 24% gain.
A Bloomberg survey showed the euro-area economy is expected to have weaker GDP growth next year than initially anticipated.
Despite lukewarm returns, some market watchers are seeing green shoots for Europe, especially given how cheap its stocks have become. While the region is in a period of “significant transition,” according to Aneeka Gupta, director of macroeconomic research at WisdomTree, the euro zone could see a recovery from next spring as political uncertainty ebbs.
“We anticipate a landscape characterized by lower interest rates, greater political intervention, a renewed emphasis on valuation, and diminished appeal for globally exposed sectors,” Gupta added.
Source : Bloomberg
