Global Market: European shares rally as healthcare gains offset eurozone fiscal concerns

European shares climbed to near one-week highs on Tuesday, with healthcare stocks leading gains, while eurozone bond yields eased after a recent surge driven by concerns over fiscal pressures and inflation.

The pan-European STOXX 600 index rose 0.8% to 638.41 points by 0727 GMT, putting the benchmark on course for a third consecutive session of gains, Reuters reported.

Healthcare stocks gained 1.6%, led by Danish biotech company Genmab, which jumped 7.6% to the top of the STOXX 600. The company and U.S. drugmaker AbbVie said their blood cancer drug combination reduced the risk of disease progression or death in a late-stage trial, boosting investor sentiment toward the sector.


Investors were also awaiting euro zone retail sales data and the UK S&P Global purchasing managers' survey due later in the day. The data could provide fresh signals on consumer spending across the euro zone and the strength of economic activity in Britain.

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The euro remained close to a 17-month low as political uncertainty weighed on the currency. Sentiment was pressured after Spanish Prime Minister Pedro Sanchez called a snap election on Monday, adding to concerns over political stability in the region.

French fiscal concerns also remained in focus, with the government seeking to push through an unpopular 2027 budget aimed at reducing the country's deficit. The fiscal debate has triggered a sharp selloff in French government bonds and contributed to broader concerns about eurozone public finances.

Despite the recent pressure, eurozone bond yields eased on Tuesday after reaching multi-decade highs last week, offering some relief to markets.

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Among individual stocks, Italy's Technoprobe rose 2.3% after J.P. Morgan initiated coverage of the company with an overweight rating.

Overall, European equities remained supported by gains in healthcare stocks, even as investors continued to monitor political developments, fiscal risks and incoming economic data for clues on the region's market outlook.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)