European equities nudged higher on Monday, supported in part by a rise in Danish pharmaceutical company Novo Nordisk (NYSE:NVO).
The company’s stock surged 2.8% in Copenhagen after data indicated that its popular weight-loss drug Wegovy provided stronger heart-protective benefits than a competing treatment from U.S. firm Eli Lilly (NYSE:LLY). Novo’s shares had been under pressure recently after the company lowered its 2025 sales growth forecast due to competition from copycat versions of Wegovy.
A rally in healthcare stocks helped lift the pan-European Stoxx 600 by 0.4%, while Germany’s Dax climbed 0.5%, the U.K.’s FTSE 100 added 0.3%, and France’s CAC 40 advanced 0.3% by 08:12 GMT.
Defense stocks also saw gains after Norway announced it would collaborate with the U.K. on a £10 billion frigate acquisition program, with shares in BAE Systems (LSE:BA.) particularly buoyant.
Trading volumes are expected to remain light as U.S. markets are closed for Labor Day. Investors were also digesting a key ruling from the U.S. Court of Appeals for the Federal Circuit issued Friday, which rejected President Donald Trump’s broad tariffs.
“Global trading partners will no doubt find it premature to be celebrating just yet, but we’ll be interested in seeing whether the Treasury market comes under any further pressure if the U.S. has to hand back already received tariff revenues,” analysts at ING said in a note.
The White House has until mid-October to appeal to the Supreme Court. Media reports suggest that Trump officials had anticipated the high court would eventually need to resolve the issue, and the administration remains confident that the tariffs — and Trump’s authority to impose them — will ultimately gain support from the court’s conservative majority.
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