European stocks stabilize as gains in cyclical sectors offset declines in technology shares
European stock markets were largely flat, as gains in cyclical sectors such as autos and chemicals offset declines in technology stocks. Novo Nordisk shares plunged 17% after the company released a surprisingly disappointing sales forecast.
The Stoxx Europe 600 Index closed little changed, after rising as much as 0.7% earlier. Chemical stocks had their best day in nearly four years, as markets grew optimistic about the region easing emission reduction rules, which fueled rotation into companies with improving growth prospects. Defensive sectors such as telecom and consumer staples also rose.
In contrast, technology stocks extended their decline, after software shares fell the previous day on concerns about the disruptive impact of artificial intelligence. Cellnex Telecom SA rose after announcing a new senior management structure late Tuesday, boosting its sector. Mining stocks gave back gains and ended lower, as momentum from a metals rally faded late in the session.
Among individual stocks, GlaxoSmithKline rose 6.9%, boosted by its HIV drugs and an asthma medication now approved for treating lung disease; the company reported better-than-expected fourth-quarter results. Novo Nordisk posted its largest drop since July, with its market value evaporating by over $40 billion, putting pressure on the healthcare sector.
Santander fell 3.5% after the Spanish bank announced a $12 billion acquisition of Webster Financial. Some analysts expressed concerns that the bank may not be making full use of its capital, while others pointed to risks related to its integration and expansion in the US.
Editor: Ding Wenwu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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