Europe's STOXX 600 closes higher on healthcare boost; auto stocks slide (updated)

Vestas Wind Systems A/S

05/02/2025 10:10

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      Novo Nordisk, GSK lead health stock higher on upbeat sales
    

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      Santander jumps on 10 billion euro share buyback plan
    

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      Renault leads decline in auto stocks
    

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      STOXX 600 up 0.36%
    

  
 (Updates to market close)
    By Nikhil Sharma and Johann M Cherian
       Feb 5 (Reuters) - European shares ended Wednesday's
choppy session higher, as a rise in healthcare companies GSK and
Novo Nordisk following their upbeat quarterly results offset
losses in carmaker stocks.
    The pan-European STOXX 600 index  .STOXX  reversed early
losses and settled up 0.36%, with healthcare  .SXDP  leading
sectoral gains with a 2.1% jump.
    Novo Nordisk  NOVOb.CO  rose 4.5% after the drugmaker posted
a better-than-expected fourth-quarter profit of $4.4 billion as
sales for its blockbuster drug Wegovy more than doubled.
However, the largest European company by market capitalization
forecast slower sales growth this year.
    "There are also some concerns emerging about long-term
tolerability. But there’s still a long way to run given the
profound health economic impact this class of drug promises to
deliver," said Derren Nathan, head of equity research at
Hargreaves Lansdown. 
    GSK  GSK.L  rose 7.6% after the British drugmaker launched a
$2.5 billion share buyback plan, while also posting upbeat
quarterly results and lifting its 2031 sales target.
    Limiting gains on the STOXX index, automobile stocks  .SXAP 
fell 1.4%, bogged down by Renault's  RENA.PA  2.6% drop, after a
report said Japan's Nissan  7201.T  would call off merger talks
with rival Honda  7267.T .
    Out of the 67 companies in the STOXX 600 that have reported
fourth quarter earnings as of Tuesday, 53.7% exceeded analyst
estimates, compared with 54% in a typical quarter, according to
data compiled by LSEG.  
    European equities, along with their global peers, started
the week on a sour note after U.S. President Donald Trump's
tariff threats, but rebounded a day later when he agreed to
pause levies on goods from Mexico and Canada and said he was
open to negotiations.
    Trump, however, followed through with tariffs on China,
which retaliated in kind, although the fallout of that has been
limited on global stocks.
    On the European Central Bank monetary policy outlook,
investors awaited the updated estimates for the so-called
neutral rate due on Friday. The neutral rate is the interest
rate level with full employment and stable inflation. 
    Among others, Santander  SAN.MC  soared 8.2% after the
lender beat fourth-quarter profit estimates and announced a
share buyback plan worth 10 billion euros ($10.39 billion).
    Vestas  VWS.CO  jumped to the top of the STOXX index, up
8.2% after the world's biggest wind turbine maker, announced a
share buyback and reported upbeat fourth-quarter results.
    The Danish stock index  .OMXC20  surged 2.9%, logging its
steepest one-day jump in more than one week. 
    Munters  MTRS.ST  slid more than 10.2% to the bottom of the
STOXX after the Swedish maker of air treatment solutions
reported what analysts say were "mixed" fourth-quarter results.

 (Reporting by Nikhil Sharma and Johann M Cherian; Editing by
Rashmi Aich, Savio D'Souza and Alex Richardson)
 ((mailto:Nikhil.Sharma@thomsonreuters.com;))