European markets experienced a rebound on Tuesday, recovering from previous losses. The pan-European Stoxx 600 index rose by 0.2% by mid-morning in London, reaching a new high of 588.42 points shortly after trading began. This surge follows the index’s recent record-breaking performance and represents a remarkable 14% increase since the start of the year. With just a week left in the trading calendar, the index is set for its third consecutive year of gains.
Key market participants are closely monitoring shares of Novo Nordisk, a prominent player in the pharmaceutical industry, particularly after the company received FDA approval for its groundbreaking GLP-1 pill. This move positions Novo Nordisk ahead of its U.S. competitor, Eli Lilly, and led to a significant 7.5% rise in its share price. Other health-focused companies also saw positive movements, with Zealand Pharma shares climbing by 2.3% and French biotech firm Abivax extending its gains by 1.4% after experiencing a notable 15.4% jump on Monday.
However, challenges persist in the renewable sector. Danish company Orsted, heavily involved in offshore wind energy, faced a 13% decline in share price on Monday after the U.S. Department of the Interior halted leases on five of its offshore wind projects currently under construction. Despite Orsted’s success in contesting past regulatory challenges related to its projects, its stock was trading down 0.9% in morning sessions.
In geopolitical news, Greenland’s Prime Minister Jens-Frederik Nielsen dismissed the significance of President Donald Trump’s recent appointment of a “special envoy” to the territory. This move appears to be a continuation of Trump’s previously voiced interest in acquiring Greenland, primarily due to its valuable rare earth mineral reserves.
On the macroeconomic front, attention is focused on Spain’s final GDP data, expected to be released on Tuesday. Last month, provisional figures indicated a year-on-year growth rate of 2.8%, hinting at a resilient economy amidst broader European challenges.
Meanwhile, in Asia-Pacific markets, a generally positive opening was noted, fueled by optimistic trends in the AI sector that had bolstered major Wall Street indexes the prior day. In the United States, stock futures showed little movement following a strong start to the week, reflecting a broader sense of caution among investors.
