European stocks rise on China optimism; Novo Nordisk scales new peak

Novo Nordisk rose 1.6% to hit a record high after the Danish drugmaker launched its weight-loss injection Wegovy in Britain. Novo, with a market capitalisation of $424.7 billion, unseated LVMH as Europe's most valuable listed company on Friday. Shares of German real estate firm Vonovia rose 1.5% after Morgan Stanley upgraded the stock to "equal-weight" from "underweight".

European shares rose on Monday, echoing an upbeat mood in Asia as investors were optimistic that a series of stimulus from China will support its slowing economy, while drugmaker Novo Nordisk's shares hit a fresh record high.

The pan-European STOXX 600 index rose 0.6% by 0720 GMT, following a three-session losing run. Miners rose 1.3%, leading gains among European sectors, as iron ore futures rallied amid optimism over top steel producer China's policy support for its struggling property sector.

China is set to take further action, including relaxing home-purchase restrictions, sources familiar with the matter told Reuters. Novo Nordisk rose 1.6% to hit a record high after the Danish drugmaker launched its weight-loss injection Wegovy in Britain. Novo, with a market capitalisation of $424.7 billion, unseated LVMH as Europe's most valuable listed company on Friday.

Shares of German real estate firm Vonovia rose 1.5% after Morgan Stanley upgraded the stock to "equal-weight" from "underweight".