© Reuters. Screens display data for the German DAX index at the Frankfurt Stock Exchange on Wednesday. Photography: Reuters.
European stocks closed higher on Wednesday thanks to a jump in Novo Nordisk Pharmaceuticals shares after positive development of diabetes drug Ozambik, but declines in shares of Fresenius (ETR:) Medical and luxury goods company LVMH limited the gains.
The European index rose 0.2 percent, approaching its highest level in three weeks. The performance of most regional markets varied, with the largest decline recorded at 0.4 percent.
LVMH shares fell 6.5 percent, touching the lowest level in ten months, after the luxury goods company announced a nine percent rise in third-quarter revenues, indicating a slowdown in growth with the decline of a strong spending wave that followed the Covid-19 pandemic.
Shares of other major French luxury goods companies fell, such as Hermes (EGX:) and Kering, each of which lost about 1.5 percent, while a measure of the shares of the ten largest European luxury goods companies fell 2.7 percent, hitting its lowest level in a week.
Investors are also cautious about the ongoing conflict in the Middle East, which increases the chances of a further rise.
An emergency unity government was formed on Wednesday while it was bombarding Gaza to end the presence of militants from the Islamic Resistance Movement (Hamas), and deployed forces north of the enclave, which is crowded with Palestinians.
But the shares of the Danish pharmaceutical company Novo Nordisk jumped 4.9 percent, contributing to continued market gains, after the company announced positive development of the drug Ozambik to treat kidney failure in diabetic patients before the planned date because it became clear from an interim analysis that the drug would succeed.
(Prepared by Muhammad Aysem for the Arabic Bulletin – Edited by Muhammad Muhammadin)
2023-10-11 18:13:00
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