European shares rise on healthcare boost, retreating bond yields

European shares recovered in early trading on Monday, boosted by healthcare stocks, as bond yields declined with investors assessing key inflation data.

The pan-European STOXX 600 gained 0.8% by 0826 GMT, after falling over 4% in the past two weeks.

Euro area sovereign bond yields dropped with investors reckoning markets broadly priced in a higher-for-longer outlook for policy rates.

Data showed consumer prices in the German state of North Rhine-Westphalia (NRW) fell by 0.1% month-on-month in October and were up by 3.1% year-on-year.

Another preliminary data showed Spain’s 12-month inflation in October was unchanged from the previous month at 3.5%.

The healthcare sector rose 1.1%, boosted by a 2.5% jump in Novo Nordisk (CSE:NOVOb).

Siemens Energy jumped 9% as close talks with Berlin over around 15 billion euros ($15.8 billion) in project-related guarantees continued over the weekend.

Dassault Systemes jumped 3.0% after JP Morgan upgraded the French software maker to “overweight” from “underweight”.

HSBC (LON:HSBA) gained 1.2% after reporting a fresh $3 billion share buyback and a more than doubling of third-quarter profit.

European shares rise on healthcare boost, retreating bond yields