Europe: Stocks close at record high, led by buoyant healthcare shares, hopes for end to US shutdown

EUROPEAN shares closed at a record high on Tuesday, led by healthcare stocks, as investors anticipated an end to the US government shutdown and assessed mixed forecasts from telecom companies including Vodafone and INWIT.

The pan-European Stoxx 600 ended up 1.3 per cent at a record close of 580.13 points, having earlier also hit an all-time intraday high.

Britain’s FTSE 100 also closed at a record high, lifted by hopes of a December Bank of England rate cut after data pointed to slowing jobs growth. Italy’s bank-heavy FTSE MIB index touched its highest since 2001.

European stocks had logged their biggest daily gain in six months on Monday, with traders hoping that a resolution of the US government shutdown could mean a restart of crucial official data releases.

The US Senate on Monday approved a deal that would restore US federal funding and end the longest shutdown in history.

Meanwhile, renewed concerns around elevated technology valuations weighed on the US markets. SoftBank Group’s US$5.8 billion sale of its Nvidia stake stoked fears that the frenzy around artificial intelligence may have peaked.

“What spares Europe today, both the Euro Stoxx index and the FTSE 100, is their smaller exposure to the technology stocks that are dragging sentiments lower today,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

Healthcare stocks added 2.9 per cent. Novo Nordisk rose 6.4 per cent with traders attributing the gains to upbeat comments from brokerage JPMorgan. Separately, the drugmaker cut the price of its blockbuster weight-loss drug, Wegovy, by up to 33 per cent in India, according to a document seen by Reuters. Zealand Pharma advanced 8.7 per cent.

Luxury stocks gained 2.4 per cent, while banks added 1.1 per cent.

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“We have seen better than expected results for many European sectors that have been under pressure, namely luxury and automakers,” Ozkardeskaya said.

“This being said, the earnings season has been mixed and the risks for the European markets continue due to the trade tensions, both with the US and China, and a quite dull growth outlook for the zone overall.”

Among corporate updates, Vodafone gained 8.3 per cent after a return to growth in Germany helped the company upgrade its earnings outlook.

Conversely, INWIT slid 11.8 per cent after the telecoms towers company lowered its revenue outlook for 2026.

Swiss stocks reached a more than three-week high, with Richemont and Swatch Group up 1.9 per cent and 5.7 per cent, respectively, on relief as US President Donald Trump said he was working with Switzerland on a deal to lower the 39 per cent tariff rate it faces on exports.

Fraport advanced 6.5 per cent after the Frankfurt Airport operator topped market expectations for third-quarter core earnings.

However, German investor morale has unexpectedly fallen in November, the ZEW economic research institute said. REUTERS