European Shares Near Record High Amidst Election Uncertainty

European shares edged close to a record high on Friday, marking their longest streak of weekly gains in nearly a year. Healthcare stocks boosted the index as investors focused on Germany's upcoming elections. Meanwhile, midcaps lagged behind, and banks reported a notable 18% profit rise.

European shares settled near a record high on Friday, marking the longest streak of weekly gains in nearly a year. Germany's DAX, however, dipped due to investor caution ahead of the country's snap elections. The pan-European STOXX 600 index added 0.5% after recovering from a one-week low on Thursday.

Healthcare stocks significantly boosted the index following the FDA's announcement about Novo Nordisk's drug availability. Wegovy and Ozempic maker shares surged 5.8%. This set the index for marginal weekly gains of 0.2%, culminating nine consecutive weeks of advances, the longest since March 2024.

Investors are also focused on Germany's elections, which could lead to a coalition government and impact economic policies. The DAX fell 0.2%, while midcaps edged up 0.4%. Barclays' strategists indicate that growth-oriented policies might benefit midcaps if a grand coalition is formed. February saw a slight pickup in German business activity, though euro zone growth remained tepid.