European stocks rose on Tuesday after surpassing a key level in the previous session, with rising precious metal prices boosting basic resource shares.
The STOXX Europe 600 index ended last year with its biggest gains since 2021, supported by lower inflation and increased defense spending.
Although analysts believe returns may not be as high this year, there is still room for growth.
It was noted: “We are starting to get somewhat accustomed to an environment of increasing uncertainty,” adding, “There is still cautious optimism, and there are factors supporting growth.”
Winning Sectors
The healthcare index rose by 1.64%, reaching its highest level since March of last year. Danish company Novo Nordisk, specializing in obesity treatment drugs, led the gainers with a rise of 6.19%.
The company launched its new drug “Wegovy” on Monday, intensifying competition with its rival Eli Lilly.
The energy index also rose by 0.83%, after climbing 1.2% during trading to hover near levels not seen since 2008.
Focus will be on a large set of economic data to be released on Tuesday, as traders analyze a wide range of inflation figures and manufacturing sector indicators.
It was stated: “We expect inflation to decline in the UK and the Eurozone, opening the door for a potential interest rate cut.”
Market Performance
In regional markets:
- The German DAX index rose 0.2% to 24,915 points.
- The French CAC 40 index fell 0.41% to 8,177 points.
- The Spanish IBEX 35 index increased 0.21% to 17,650 points.
- The STOXX 600 index rose about 0.22% to 603.07 points.
- The UK’s FTSE 100 index rose 1.07% to 10,112 points.
A survey published on Tuesday showed that the services sector in the Eurozone’s largest economy maintained its strong growth in December, although the pace of growth slowed for the second consecutive month.
Regarding individual stocks:
- Shares of InPost jumped approximately 18.4% after the parcel locker company announced it had received a preliminary offer regarding a potential acquisition of all its shares.
- Shares of Adidas fell 6.7% after Bank of America downgraded the sportswear retailer from “buy” to “underperform,” citing expectations of slowing sales growth.
Traders are anticipating a set of data to be released on Tuesday, including German inflation figures and manufacturing data from the United States and Europe, including the UK, France, Germany, and Italy.
STOXX Europe 600
The STOXX Europe 600 is a major stock index representing 600 large, mid, and small-cap companies across 17 European countries. It was launched in 1998 by STOXX Ltd. to provide a broad and representative benchmark for the European equity market.
Europe
Europe is a continent with a rich and complex history, shaped by ancient civilizations like Greece and Rome, the transformative periods of the Renaissance and the Enlightenment, and the profound impacts of two world wars. Culturally, it is renowned for its diverse array of artistic, architectural, and intellectual heritage, from medieval castles and cathedrals to modern museums and capitals. The formation of the European Union in the late 20th century represents a significant modern political and economic project aimed at fostering unity and cooperation among its many nations.
Novo Nordisk
Novo Nordisk is a Danish multinational pharmaceutical company founded in 1923, historically focused on producing insulin for diabetes treatment. It has grown into a global healthcare leader, renowned for its advancements in diabetes care and other serious chronic diseases.
Wegovy
Wegovy is not a place or cultural site; it is a prescription medication used for weight management. It is the brand name for semaglutide, which was approved by the FDA in 2021 and works by mimicking a hormone that regulates appetite.
Eli Lilly
Eli Lilly is a global pharmaceutical company founded in 1876 in Indianapolis, Indiana, by Colonel Eli Lilly. It has a long history of innovation, including being the first to mass-produce penicillin and insulin, and remains a major developer of medicines for conditions like diabetes and depression.
UK
The United Kingdom is a sovereign nation comprising England, Scotland, Wales, and Northern Ireland, with a history shaped by the Roman occupation, the formation of the British Empire, and its evolution into a modern constitutional monarchy. Its global cultural influence is profound, stemming from its historical role in industry, politics, and the arts.
Eurozone
The Eurozone is the monetary union of 20 European Union member states that have adopted the euro as their sole legal tender. It was formally established in 1999 with 11 founding members, creating a shared central banking system managed by the European Central Bank to foster economic integration and stability.
German DAX index
The German DAX index is a stock market index consisting of the 40 major German companies trading on the Frankfurt Stock Exchange. It was officially launched in 1988 with a base value of 1,000 points, serving as a benchmark for the German economy and reflecting its industrial and financial strength.
Frankfurt
Frankfurt, officially Frankfurt am Main, is a major financial hub in central Germany with a skyline dominated by modern skyscrapers, earning it the nickname “Mainhattan.” Its history dates back to Roman settlements, and it served as a significant medieval trade center and the site for the election and coronation of Holy Roman Emperors. The city was heavily rebuilt after being devastated in World War II, blending its reconstructed historical Altstadt (Old Town) with its contemporary role as a global economic center.
Germany
Germany is a country in Central Europe with a complex history, having been a collection of states for centuries before unifying into a nation-state in 1871. It was divided after World War II into East and West Germany, reunifying peacefully in 1990 following the fall of the Berlin Wall. Today, it is a leading economic power and a federal parliamentary republic known for its rich cultural heritage in philosophy, music, and science.
French CAC 40 index
The CAC 40 is France’s primary stock market index, composed of the 40 most significant publicly traded companies on the Euronext Paris exchange. It was established in 1987 with a base value of 1,000 points, serving as a key benchmark for the French economy and the performance of its leading blue-chip corporations.
Spanish IBEX 35 index
The IBEX 35 is Spain’s benchmark stock market index, composed of the 35 most liquid companies traded on the Madrid Stock Exchange. It was officially launched on January 14, 1992, to serve as a clear indicator of the Spanish equity market’s performance and to provide a basis for financial derivatives.
STOXX 600 index
The STOXX 600 is a major European stock market index, representing 600 large, mid, and small-cap companies across 17 countries in Europe. It was introduced in 1998 by STOXX Ltd., a subsidiary of Deutsche Börse Group, to provide a broad and representative benchmark for the European equity market.
UK’s FTSE 100 index
The FTSE 100 is a stock market index representing the 100 companies with the highest market capitalisation listed on the London Stock Exchange. It was launched on 3 January 1984 with a base level of 1000, serving as a key indicator of the health of the UK’s largest publicly traded businesses and the broader British economy.
InPost
InPost is a Polish logistics company founded in 2006, best known for its extensive network of automated parcel lockers for convenient package pickup and drop-off. It revolutionized last-mile delivery in Poland and has since expanded its services to several other European countries.
Adidas
Adidas is a German multinational corporation founded in 1949 by Adolf “Adi” Dassler, originally evolving from the earlier “Gebrüder Dassler Schuhfabrik” started by him and his brother in the 1920s. It is globally recognized as a major sportswear manufacturer, famous for its three-stripe logo and athletic footwear, apparel, and equipment.
Bank of America
The Bank of America is a major American multinational investment bank and financial services corporation, founded in 1904 as the Bank of Italy in San Francisco by Amadeo Pietro Giannini. It was established to serve immigrant communities and grew through acquisitions, notably merging with NationsBank in 1998 to become the modern entity. Today, it is one of the world’s largest banking institutions.
United States
The United States is a federal republic founded in 1776 following a war for independence from Great Britain, established upon principles of representative democracy and individual rights enshrined in its Constitution. Its history is marked by westward expansion, industrialization, and its emergence as a global superpower in the 20th century. The nation’s culture is a diverse blend of indigenous, European, African, and global influences, reflected in its traditions, arts, and social fabric.
France
France is a country in Western Europe with a rich cultural and historical legacy, dating back to ancient Gaul and the Roman Empire. It became a major global power, particularly under monarchs like Louis XIV and after the French Revolution of 1789, which established influential republican ideals. Today, it is known for its iconic landmarks like the Eiffel Tower, its contributions to art, philosophy, and cuisine, and as a central political force within the European Union.
Italy
Italy is a country in Southern Europe with a rich cultural history dating back to the Roman Empire, which was one of the largest and most influential civilizations of antiquity. It is renowned as the birthplace of the Renaissance, a period of extraordinary artistic and intellectual achievement, and is home to numerous UNESCO World Heritage sites, including historic cities, ancient ruins, and iconic artworks.
