European Stocks Hit Record High, Boosted by Novo Nordisk's Weight Loss Pill

European stocks briefly touched a record high, propelled by gains in the healthcare sector following the U.S. approval of Novo Nordisk's weight loss pill. However, declines in bank stocks tempered the overall increase.

Market Performance

The pan-European STOXX 600 index rose 0.2% to 587.97 in midday European trading. Regional markets showed mixed performance. The Ibex index of the Madrid Stock Exchange is down 0.2% today but has gained 4.5% since the beginning of the month and 47% since the beginning of the year. Among Europe's benchmark stock exchanges, the Frankfurt Dax is up 2% since the beginning of the month and 22% since the beginning of the year. The Paris Cac40 remains behind, -0.2% since the beginning of the month and +9.8% since the beginning of the year, while the Ftse Mib of the Italian Stock Exchange is down 0.2% today. The euro zone stock volatility indicator fell 0.19 points to 14.23, the lowest level in just over a year.

Novo Nordisk's Impact

Novo Nordisk shares surged 7.66% to 326.75 Danish crowns after the U.S. Food and Drug Administration approved its weight loss pill. This approval gives the Danish pharmaceutical company an advantage in the race to commercialize oral weight management drugs, regaining momentum against U.S. rival Eli Lilly. The entire European healthcare sector jumped 1.1%, outperforming its competitors.

The best and worst performing indices:

Banking and Technology Sectors

In contrast, bank stocks, which have been the best performers this year with a surge of over 70% to their highest levels since 2008, are losing approximately 0.3% today, weighing on the benchmark index. Technology stocks continued their recovery from the end of last week, with Nvidia up 1.5%, providing the biggest boost to the S&P 500 yesterday.

China's Tariffs and U.S. GDP

China has announced it will impose provisional duties of up to 42.7% on dairy imports from the European Union, seen as retaliation for the bloc's tariffs on electric vehicles. Investors are also closely monitoring U.S. third-quarter GDP data, which is expected to show continued strong growth in the U.S. economy and provide indications to the Fed.

U.S. Market and Interest Rate Expectations

U.S. stocks are holding steady, with the S&P 500 index expected to open largely unchanged after a three-session rally that brought the benchmark close to a new record high. Traders are awaiting some of the last economic data of 2025 to assess whether they might significantly alter expectations for interest rate cuts by the Federal Reserve. Cooling inflation and mixed labor data have led markets to price in at least two rate cuts in the United States in 2026. While the delayed publication of the U.S. third-quarter gross domestic product, expected today, is likely too dated to offer a clear indication of current conditions, traders will also focus on consumer data after November showed a sharp decline in confidence. In any case, according to Bloomberg, experts are now looking to another year of strong gains for the S&P 500, supported by expectations of solid earnings and bets on an easing of monetary policy.

Analyst Expectations for S&P 500

• Solid Earnings
• Easing Monetary Policy

Commodities and Currencies

Gold extended its record run, up 0.9% to $4,483.13 an ounce. Silver and copper also rose. Brent crude oil is up 0.2% to $62.21 a barrel. The euro-dollar is up 0.3% to $1.1797. The dollar, meanwhile, is heading towards its lowest level since October. Bitcoin is down 0.8% to $87,540.

Italian Stock Market

The Ftse Mib index of Milan has gained 2.7% since the end of November at today's prices. With only a few sessions left until the end of 2025, the overall picture is unlikely to change in the coming days, so the Italian stock market is expected to rise by just over 30% for the year. The Ftse Mib is therefore about to reach its third consecutive year in positive territory, a sequence not seen since the four-year period 2012-2015.

Ftse Mib Performance

• Gained 2.7% since end of November
• Expected rise of just over 30% for the year
• On track for third consecutive year in positive territory

Individual Stock Movements

Recordati is up 0.6% following Novo's rise.

Fincantieri is up 1.5%. Donald Trump has announced a new class of 'signed' Trump warships. The president appeared to journalists at a brief press conference at Mar-a-Lago, flanked by Secretary of Defense Pete Hegseth and Secretary of State Marco Rubio. The new class of U.S. Navy warships is intended to replace the U.S. fleet, which the president himself described as "old, worn out and obsolete." The plan initially calls for two ships, but will later be expanded to 10 and eventually to 20-25. Leonardo is also up 1%.

Stellantis is up 0.5%. Car registrations in Europe show growth in November, with positive performance in Spain (+12.9%) and Germany (+2.5%), while declines were recorded in France (-0.3%) and unchanged data for Italy. In the EU, Efta and Great Britain area, registrations increased by 2.4% year-on-year to 1,079,563 vehicles, according to Acea calculations. In November, the Stellantis group recorded a year-on-year contraction in registrations of 2.7%, with a market share down to 12.9% from 13.5% a year earlier. Registrations of cars with electric batteries, again in the Eu+Efta+Uk area, rose in November by 37.3% to 253,768 units. On Monday, the Council of Ministers authorized Sogin to purchase Deposito Avogadro from Stellantis, according to the final communiqué of the meeting. The site, according to the website of the Ministry of the Environment, includes facilities for the temporary storage of spent nuclear fuel.

Stellantis and European Car Registrations

TIM's Situation

Tim is down 1.5%. Davide Leone, one of the main holders of TIM's savings shares, welcomes the terms of conversion proposed by the board of directors. The company has provided more details on the timing and quorums for the conversion of savings shares, with the aim of completing the process by June. January 19 is the registration date for the shareholders' and savings shareholders' meetings, both scheduled for January 28.

Key Dates for TIM Shareholders

Breakdown of European Car Registrations

Details on Electric Car Registrations

Performance of Key Stocks

Impact of Trump's Announcement on Fincantieri

Fincantieri experienced a boost following Donald Trump's announcement of a new class of warships intended to modernize the U.S. Navy.