European markets reached new heights in their final full trading session before Christmas, surprising many with a strong performance.
On Tuesday, the pan-European Stoxx 600 index opened on an upward trajectory, recovering from losses experienced in the previous trading day. By 8:30 a.m. London time (which is 4:30 a.m. ET), the index had climbed 0.3%, achieving a notable peak of 588.42 points—this comes just days after it had broken its previous record. Despite ending Monday slightly lower by 0.1%, the Stoxx 600 has impressively increased by 14% this year alone. With only a week left in the year, it appears well-positioned to secure its third consecutive annual increase.
Investors are particularly keen on the stock of Novo Nordisk, as the company has recently received FDA approval for its groundbreaking GLP-1 pill for weight management, a significant milestone that puts it ahead of American competitor Eli Lilly. Following the announcement, Novo Nordisk’s shares surged by 6% in early trading on Tuesday, reflecting strong market optimism.
Additionally, shares of French biotech firm Abivax continued to rally, rising 3.6% for the second consecutive day. This company has emerged as one of Europe’s top-performing stocks this year, having skyrocketed by an astonishing 15.4% just the day before.
In contrast, Danish renewable energy leader Orsted faced challenges as its stock plummeted 13% on Monday following news that the U.S. Department of the Interior was suspending leases related to five offshore wind projects currently under construction. Earlier this year, Orsted had successfully contested the Trump administration's halt on its nearly-finished Revolution Wind project off the coast of Rhode Island. In early trading on Tuesday, Orsted's shares dipped by 1.7%, although they later stabilized near the flatline.
In political news, Greenland's Prime Minister Jens-Frederik Nielsen dismissed the recent appointment of a "special envoy" by President Donald Trump, who has previously expressed interest in acquiring Greenland due to its valuable rare earth resources.
On the economic front, final GDP data from Spain is anticipated on Tuesday, following provisional figures released last month that indicated a year-on-year growth rate of 2.8%.
Meanwhile, Asia-Pacific markets also opened predominantly higher on Tuesday, buoyed by robust gains in major Wall Street indexes overnight. In the United States, stock futures were trading close to unchanged late Monday evening, following a strong kickoff to a shortened trading week.
— This report was enhanced by contributions from CNBC's Elsa Ohlen and Lim Hui Jie.
