Pharma gains boost European shares to near 9-month highs

The pan-European index has added 6.7% since the start of the year, as warmer weather added to hopes for a milder-than-expected recession in the region and data signalled an easing of price pressures in the United States and the euro zone. The World Economic Forum's annual winter shindig in Davos kicked off earlier in the day following a three-year hiatus, with investors keeping an eye on commentary from several central bank policymakers and industry leaders.

European shares inched higher on Monday, extending their sharp rally since the start of 2023, as healthcare stocks boosted the benchmark index to a near nine-month high.

The STOXX 600 gained 0.3% by 0815 GMT, with healthcare stocks up 0.6%. The pan-European index has added 6.7% since the start of the year, as warmer weather added to hopes for a milder-than-expected recession in the region and data signalled an easing of price pressures in the United States and the euro zone.

The World Economic Forum's annual winter shindig in Davos kicked off earlier in the day following a three-year hiatus, with investors keeping an eye on commentary from several central bank policymakers and industry leaders. Also, in focus was a meeting of EU finance ministers, European Central Bank (ECB) President Christine Lagarde and ECB board member Fabio Panetta in Brussels later in the day.

Temenos jumped 5.9% after Chief Executive Officer Max Chuard quit the Swiss financial software company which has been under pressure from activist shareholders. Spain's BBVA rose 0.4% after the bank's chairman said they expected its 2022 dividend to significantly top the 0.31 euros dividend per-share paid out in 2021.

Marks & Spencer gained 1.1% after the British clothing and food retailer said it planned to open 20 new stores in its 2023-24 financial year as part of a 480 million pound ($587 million) investment in its store estate. Swiss construction chemicals maker Sika edged higher on agreeing to sell part of its admixture business to UK-based chemical and energy group INEOS.

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