European Stocks Supported by Upbeat Earnings Amid Tariff Jitters
European shares were steady as investors remained cautious about the prospect of US trade tariffs, while Novo Nordisk A/S and banking stocks rose after results.
The Stoxx Europe 600 Index was little changed as of 8:14 a.m. in London, with health care, energy and banking sectors leading gains, while autos and technology stocks lagged. Novo Nordisk shares rose 5.4% after the Danish drugmaker said sales will likely surge this year as it builds supply for diabetes drug Ozempic and obesity treatment Wegovy. Its stock had fallen by more than 40% since a June record high.
The banking sector gained after better-than-expected reports from lenders including Credit Agricole SA, DNB Bank ASA and Svenska Handelsbanken AB. Banco Santander SA jumped 7% as it unveiled a €10 billion buyback plan after it posted another record profit.
The benchmark index has stalled near record highs, as the European Union prepares for a transatlantic trade fight. Still, President Donald Trump’s decision to delay broad tariffs on Mexico and Canada this week has bolstered confidence in the bloc that it may be able to negotiate an acceptable outcome.
Geopolitical uncertainty at home and the outlook for US interest rates has also tempered optimism, while higher investor exposure to European stocks is making further gains more challenging.
Source: Bloomberg
