European stock markets edge higher as Novo Nordisk shares jump again

European stocks edged higher on Wednesday as Novo Nordisk shares jumped on a positive update on its diabetes drug Ozempic, though a drop in shares of Fresenius Medical and French luxury giant LVMH capped gains.

Although there was a slight rise in the benchmark pan-European STOXX 600 index, the Dublin, London and Paris markets all fell.

Dublin

The Iseq slipped 0.4 per cent, with Flutter Entertainment one of the few of the key stocks to rise during the session. The Paddy Power owner added 0.8 per cent to €159.55, bucking the subdued mood.

Packaging group Smurfit Kappa dropped 0.8 per cent to €31.84, while insulation-maker Kingspan declined 1.6 per cent to €70.88. Food group Kerry was also a faller, ending 1.6 per cent lower at €75.82, with Glanbia down 1 per cent at €15.01.

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AIB declined 0.9 per cent to €4.32, while Bank of Ireland finished down 0.4 per cent at €9.45.

London

The commodity-heavy FTSE 100 nudged down 0.1 per cent, while the domestically oriented FTSE 250 shed 0.5 per cent.

BP and Shell fell 0.9 per cent and 0.6 per cent respectively, as oil prices slid a day after top Opec producer Saudi Arabia pledged to help stabilise the market in the aftermath of the Middle East conflict.

Burberry shares fell 3.2 per cent after European peer LVMH reported slower third-quarter sales growth.

Travis Perkins slumped 6.2 per cent as it downgraded its annual profit forecast by as much as 27 per cent, citing UK housing market woes. Housing-related peers Howden Joinery and Kingfisher also fell.

Fashion retailer Next slid 2.3 per cent after report that it is close to buying fashion chain FatFace, while British transport operator FirstGroup upgraded its profit expectations, lifting shares by 3.7 per cent.

Europe

The pan-European STOXX 600 index rose 0.2 per cent to hit a near three-week high. Most regional markets were mixed, with France’s blue-chip index lagging the most, down 0.4 per cent.

LVMH dropped 6.5 per cent to touch a 10-month low after the luxury goods bellwether reported a 9 per cent rise in third-quarter revenue, marking slower growth as a strong wave of post-pandemic spending eases.

Shares of other French luxury majors Hermes and Kering fell about 1.5 per cent each, while a gauge of top 10 European luxury stocks tumbled 2.7 per cent to its lowest level in a week.

Helping keep the markets afloat, Novo Nordisk jumped 4.9 per cent after the Danish drugmaker said it would stop a trial studying Ozempic to treat kidney failure in diabetes patients in advance of schedule because it was clear from an interim analysis that the treatment would succeed.

US

The Nasdaq rose in early trading as easing long-term US Treasury yields boosted megacap stocks, while investors shrugged off hotter-than-expected inflation data and awaited minutes from the Federal Reserve’s last policy meeting.

Mega-cap stocks Apple, Microsoft, Alphabet, Tesla, Nvidia and Meta Platforms advanced between 0.3 per cent and 1.7 per cent.

Energy stocks were the worst hit, hurt by a 4.6 per cent fall in Exxon Mobil as the oil and gas producer agreed to buy rival Pioneer Natural Resources in an all-stock deal valued at $59.5 billion. Pioneer was up 1 per cent.

Luxury sandal maker Birkenstock notched a valuation of $8.32 billion in its market debut after shares opened 11 per cent below their offer price. The stock began trading at $41 apiece, compared with the initial public offering price of $46.

Drugmaker Eli Lilly gained 3.8 per cent following the early success of Danish rival Novo Nordisk’s Ozempic in a trial to treat kidney failure, while dialysis firms DaVita and Baxter International slumped 18.8 per cent and 9 per cent respectively.

Additional reporting: Reuters