European Stocks Hit One-Month Low on Growth Concerns, Novo Drop
European equities fell Monday amid concerns about Germany’s spending plans, US economic growth and the impact of tariffs, led by losses for technology stocks and a drop for index heavyweight Novo Nordisk A/S.
The Stoxx Europe 600 Index was down 1.3% at the close, the lowest since Feb. 10. Technology was the worst-performing sector, with the Stoxx Tech Index close to giving up this year’s gains. Banks — which have led the rally in 2025 — also fell. US equity indexes declined and the Magnificent Seven dropped as US President Donald Trump said the US economy faces “a period of transition.”
So-called high momentum stocks were a particular feature of the day’s trading. A UBS basket that includes UCB SA, Siemens Energy AG and Rolls-Royce Holdings Plc, declined 3.3%.
Sentiment took a further hit after Germany’s Green party said it won’t support a draft debt-financed package that would unleash billions of euros in defense and infrastructure spending. Danish weight-loss-drug maker Novo Nordisk was the biggest drag on the index, down 8.1%, after a clinical trial of its CagriSema treatment fell short of some investors’ expectations.
European equities came under pressure last week as trade war concerns escalated. Still, defense shares were a bright spot as Europe prepares for a new era of increased spending on the military and infrastructure. The prospect of fiscal stimulus in the euro zone prompted HSBC strategists to raise their rating on European equities, excluding the UK, to overweight from underweight.
The Stoxx 600 is up 7.6% on the year and has outperformed a negative US market. Investors on Monday were also weighing positive signs that a downturn in German industrial production is easing.
Source : Bloomberg
