European Stocks Rise Amidst Profit Warning and Pharmaceutical Shake-up
European stocks closed on a positive note with financials and defense stocks leading, despite a significant drop in Danish markets caused by Novo Nordisk's profit warning. The broader STOXX 600 index gained 0.3%, aided by improvements in the tariff landscape and optimistic corporate earnings outlook.
European stock markets ended Tuesday on a high, driven by gains in financial and defense sectors. However, Danish stocks suffered their most significant drop of the year when Novo Nordisk, a prominent player in the weight-loss drug market, issued a profit warning, leading to a steep 23% fall in its share price.
Novo Nordisk's decline in the Copenhagen OMX index, which dipped by 11.9%, highlighted investor concerns over its ability to maintain a competitive edge in the obesity drug market against U.S. firm Eli Lilly. Despite a CEO change, investor confidence remains shaky.
The pan-European STOXX 600 index finished 0.3% higher, with banks reaching their highest since September 2008 due to improved earnings prospects. The U.S.-EU agreement to lower tariffs provided much-needed trade clarity, aiding defense stocks and companies like Airbus and Philips.
(With inputs from agencies.)
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