European Stocks Rise as Healthcare Sector Gains
European equities rose on Tuesday as gains for healthcare and defense stocks offset declines for technology companies. Shares of Unilever Plc fell after the surprise exit of its CEO.
The Stoxx Europe 600 Index was up 0.1% at 8:23 a.m. in London. The health-care sector outperformed as Smith & Nephew Plc jumped after earnings beat expectations while shares of tech giant Novo Nordisk A/S also rose. Defense stocks got a boost from news that Germany is discussing a €200 billion ($209 billion) emergency defense fund.
Among decliners, concerns over potentially tighter U.S. restrictions on semiconductor companies weighed on the technology sector, while Unilever Plc shares fell after the consumer goods company’s Chief Executive Officer Hein Schumacher resigned in a surprise exit.
STMicroelectronics NV also came under pressure following a report in French newspaper Les Echos that the Italian government is looking to replace the chipmaker’s Chief Executive, Jean-Marc Chery.
On a quieter day for corporate earnings, cement maker Heidelberg Materials AG fell after its update, with analysts saying its new outlook was largely in line with expectations.
European stocks have risen the most this year, with the benchmark index up 9%. The gauge is set for a second straight month of gains as banking, telecom and auto stocks have rallied.
Resilient corporate profits have kept the region’s stock markets buoyant, even amid concerns over rising trade tensions and uncertainty over the path of interest rates.
“Things are going well in Europe, I think that momentum may continue for a while. The bigger issue is what kind of geopolitical things could come out of the U.S. and Ukraine to maybe knock us down,” said Morningstar strategist Michael Field.
Source: Bloomberg
