European shares climb on healthcare boost, Novo Nordisk hits 1-month high
By Ankika Biswas
(Reuters) -European shares rose on Monday, aided by healthcare, with investors awaiting a slew of data throughout the week for clarity on the economic outlook as major central banks advocate restrictive monetary policies.
The pan-European STOXX 600 rose 0.8% by 0920 GMT, in a broad-based rally.
The index clocked its steepest single-day decline in three weeks on Friday, dropping by 1%, following remarks from the U.S. Federal Reserve Chair Jerome Powell that tempered investor confidence in the notion that interest rates have reached a peak.
Focus now lies on key inflation data, including that of the U.S. and the euro zone through the week.
«Markets are getting the feeling the Fed is good being data dependent. They want to see the impact of previous rate hikes on the economy, the full extent of which will take a while to see,» said Daniela Hathorn, senior market analyst at Capital.com.
Investors are also watchful of U.S. President Joe Biden's meeting with Chinese President Xi Jinping this week during the Asia-Pacific Economic Cooperation summit in San Francisco.
«Just the fact those lines of communication continue to be open brings a vibe of positivity and if we do see some significant headlines coming out of that, more focus will turn towards it,» Capital.com's Hathorn added.
Markets appeared to look past the risk of a U.S. government shutdown ahead of an end-of-week deadline for funding and Moody's (NYSE:MCO) decision to lower its outlook on the U.S. credit rating to «negative» from «stable».
Among major stocks, Novo Nordisk (NYSE:NVO) jumped 2.6% to hit a near one-month high, driving the healthcare index up 1.4%, after data showed heart-protective benefits of its widely popular Wegovy obesity treatment
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