European Stocks Shine with Corporate Gains: Novo Nordisk Leads the Way

European stocks edged higher on Friday, fueled by positive corporate earnings and a significant rise in Novo Nordisk shares. Positioned for their largest weekly gain in twelve weeks, stocks received a further push from a 4.6% rise in Novo shares after Eli Lilly's weight-loss pill underperformed against Novo's Wegovy treatment in a late-stage study.

The pan-European STOXX 600 index climbed 0.2%, reflecting a weekly gain of 2.1% as of 0840 GMT. While most regional markets remained positive, Germany's DAX slipped by 0.3%. Positive corporate earnings and potential further interest rate cuts by the Federal Reserve helped stocks recover from a five-week low last Friday.

Among the 198 companies in the STOXX 600 that reported earnings by Tuesday, 53% surpassed analysts' predictions, according to LSEG data. "Equities have held up relatively well, partly due to decent earnings providing some trade certainty," said Richard Flax, Moneyfarm's chief investment officer. Insurance stocks saw a 1.8% decline after hitting a high, while defence sector expectations boosted Thyssenkrupp shares by 2.5% amid anticipated value gains from increased European defence spending.

(With inputs from agencies.)