LONDON – European stock markets have launched a new month high as the defense and healthcare sectors received a boost from corporate news.
The Stoxx Aerospace and Defense Index rose 2.2% after the UK government announced on Sunday that Norway had issued an order of 10 billion pounds ($13.5 billion) for British warships. According to a government statement, it will support the UK’s largest warship export contract by value and the employment of 4,000 people by the 2030s.
Type 26 frigates will be built in BAE SystemA shipyard in Glasgow, Scotland, saw its shares increase by 1.9% on Monday. Other winners in this sector included the UK Babcock Internationalan increase of 2.1%.
Meanwhile, shares in Danish drug giant Novonordisk rose 1.8% after the company released trial data suggesting that its hit drug Wegovy outweighs its key rivals in reducing risk of heart disease.
In this study, continuous users of Semaglutide, a weight control drug branded as Wegovy, had a 57% increase in the risk of heart attack, stroke, or death than those using Zepbound, which uses tilzepatide, the active ingredient in Mounjaro. Eli Lily. Companies are the leading players in the increasingly competitive weight loss space, and investors continue to evaluate research data on key products.
Denmark last week halved its annual economic growth forecast. This cites Novo’s expectations for a decline in US market share and a decline in exports amid the struggle with tariffs and general competitors.
Stoxx 600 index.
Türkiye’s growth data and EU unemployment rates will be announced, but it’s a quiet day on the European data front.
Regional stock markets closed last Friday as traders monitored European and US inflation data and assessed the potential for a US Federal Reserve cut at their next meeting in September. Federal Reserve Chairman Jerome Powell surprised her expectations for the cut in a speech that was widely interpreted as Diesch Tilting. The Fed will meet September 16th-17th.
Meanwhile, the Asia-Pacific market was traded overnight in the mixed territory as investors evaluated manufacturing data for Chinese rating dogs in August. The metric, previously known as the Caixin Purchasing Managers’ Index, is now 50.5 compared to the previous month’s contraction of 49.5.
Data released on Sunday showed that PMI data from the country’s manufacturing industry came to 49.4 in August compared to the previous month’s 49.3.
Investors are also evaluating India-China relations after the two-day meeting of the Shanghai Cooperation Agency’s Regional Security Block agreed that leaders from both countries were development partners rather than rivals. Chinese President Xi Jinping will give a speech at the summit.
US financial markets are closed due to Monday’s Labor Day public holidays.
– CNBC’s Amala Balakrishner contributed to this market report.
