European equities hovered near record highs, propelled by a surge in Novo Nordisk shares after the company secured U.S. approval to sell an oral version of its widely popular obesity treatment, Wegovy.
The Stoxx Europe 600 index climbed 0.2% by 8:12 AM London time. Healthcare stocks led the advance, with Novo Nordisk shares jumping 5.9%. The pharmaceutical firm announced plans to begin selling the oral drug – the first in the widely used GLP-1 class for obesity and diabetes – in the U.S. as early as January.
European Defensive Sectors Outperform
Defensive sectors, including telecommunications and financial services, also posted gains. Conversely, economically sensitive stocks such as travel & leisure and energy were among the weakest performers.
European equities are poised to conclude a third consecutive year of gains, hovering near record levels. The benchmark Stoxx 600 index is also on track for one of its strongest quarterly performances in two years, fueled by persistent optimism surrounding global economic growth and declining borrowing costs.
Alberto Tocchio, a portfolio manager at Kairos Partners, stated that the outlook for European equities in 2026 “appears more positive.”
Tocchio added that “financial conditions are reigniting investor interest and boosting corporate confidence,” noting the region is also well-positioned to benefit from expanding momentum related to artificial intelligence trade.
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