European stock markets witnessed a rebound on Monday, primarily driven by gains in the healthcare sector.
Investors are currently focused on upcoming economic data and central bank policies, following recent comments from US Federal Reserve chair Jerome Powell that challenged the belief of peaking interest rates.
The pan-European STOXX 600 index rose 0.8% by 0920 GMT, marking a recovery from its largest single-day fall in three weeks last Friday. This improvement comes despite the backdrop of a potential US government shutdown and Moody’s recent downgrade of the U.S. credit rating outlook to ‘negative’.
In the healthcare sector, Denmark’s Novo Nordisk (NOVOb.CO) saw a significant 2.6% increase, reaching a near one-month high, after reports highlighted the heart-protective benefits of its Wegovy obesity treatment. The Danish OMX Copenhagen 20 index also surged by 2%, leading the regional markets.
In the UK, Phoenix Group (PHNX.L) experienced a notable 7.1% jump after raising its full-year cash generation forecast, while British Land (BLND.L) gained 5.5% following optimistic rental growth projections.
Conversely, Technip Energies (TE.PA) faced a 1.9% decline after a downgrade from Barclays, and Sweden’s SBB (SBBb.ST) reported a 6.9% drop due to an expanded quarterly pre-tax loss.
Amidst these developments, Portugal’s PSI 20 index rose by 0.7%, recovering from last week’s losses. The country, recently experiencing political turbulence and a corruption investigation into green energy projects, reassured investors of its commitment to remain an attractive business destination.
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