LONDON — European stock markets kicked off the new month higher, as the defense and health-care sectors received a boost from corporate news.
The Stoxx Aerospace and Defense index was up 1.65% at 10 a.m. in London (5 a.m. ET), after the U.K. government announced Sunday that Norway had placed a £10 billion ($13.5 billion) order for British-made warships for its Armed Forces. It will be the U.K.’s biggest ever warship export deal by value and support 4,000 jobs into the 2030s, according to a government statement.
The Type 26 frigates will be built at BAE Systems‘ shipyards in Glasgow, Scotland, with shares of the company trading around 3% higher on Monday. Other gainers in the sector include Germany’s Renk Group and the U.K.’s Babcock International, both up around 3.5%.
Shares of Danish pharmaceutical giant Novo Nordisk, meanwhile, ticked 3% higher, after the company released trial data suggesting its blockbuster drug WeGovy outperforms major rivals in heart disease risk reduction.
The study found continued users of semaglutide, a weight management drug branded as Wegovy, had up to a 57% greater reduction in the risk of heart attack, stroke or death than those using tirzepatide — the active ingredient in Zepbound and Mounjaro, the rival drugs produced by U.S. firm Eli Lilly. The companies are the leading players in the increasingly competitive weight loss space, with investors continuing to assess study data on their key products.
Denmark last week more than halved its annual economic growth forecast, in part citing Novo’s declining U.S. market share and expectations for lower exports amid its struggles with tariffs and generic competitors.
Stoxx 600 index.
It’s a quiet day on the data front in Europe, although Turkish growth data and EU unemployment figures will be released.
Regional stock markets closed lower last Friday as traders monitored European and U.S. inflation data and assessed the likelihood of the U.S. Federal Reserve cutting interest rates at its next meeting in September. Fed Chair Jerome Powell stoked expectations for a cut in a speech widely interpreted as dovish-tilting. The Fed next meets on Sept. 16-17.
Meanwhile, Asia-Pacific markets traded in mixed territory overnight as investors assessed China’s RatingDog manufacturing data for August. The metric — previously known as the Caixin Purchasing Managers’ Index — came in at 50.5, compared with a contraction of 49.5 the month before.
Data released Sunday showed that the country’s manufacturing PMI data came in at 49.4 in August, compared with 49.3 the month before.
Investors are also assessing India-China relations after leaders from both countries agreed that they are development partners, not rivals, during a two-day meeting of the Shanghai Cooperation Organization regional security bloc. Chinese President Xi Jinping is expected to deliver a speech at the summit.
U.S. financial markets are closed for the Labor Day public holiday on Monday.
— CNBC’s Amala Balakrishner contributed to this market report.
