European Markets: Health Sector Woes and Energy Gains

European shares struggled as losses in Novo Nordisk shares, due to competitive pressures in the weight-loss drug market, offset gains in energy stocks driven by rising crude prices. The pan-European STOXX 600 remained flat, with investors eyeing eurozone inflation data and software shares amid global AI disruptions.

European shares experienced a muted session on Wednesday as notable losses in Novo Nordisk counterbalanced strength in energy stocks. Investors remained cautious, closely monitoring software shares and a key upcoming inflation report.

The pan-European STOXX 600 recorded little change at 618.26 points by 0812 GMT. The healthcare sector led the losses, down 1.9%, with Novo Nordisk shares plummeting 18.7%. This significant drop was attributed to the company's expectation that its sales and operating profit in 2026 will decline year on year, as it faces stiff competition in the weight-loss drug market. However, a 1.3% rise in energy stocks, spurred by increasing crude prices amid geopolitical tensions between the United States and Iran, helped to offset some losses.

The Danish stock index suffered a 7.8% drop, heading toward its steepest daily fall since July 2025. Meanwhile, attention was also on European software companies, which faced pressure after the launch of Anthropic's plug-ins raised fears of AI-driven disruptions globally. Tech and media stocks saw declines of 0.3% and 0.5%, respectively, following significant drops on Tuesday. Investors also awaited January eurozone inflation data, expected to show a decrease to 1.7%, below the European Central Bank's target, indicating easing price pressures.

(With inputs from agencies.)