European stocks climbed towards their highest levels in a week on Tuesday, supported by gains in healthcare shares and a retreat in eurozone government bond yields.
The pan-European STOXX 600 index rose 0.8% to 638.67 points by 08:35 GMT, putting it on course for a third consecutive session of gains. Healthcare led the advance, with the sector’s index up 1.4%, according to Reuters. The figures reflect intraday trading rather than closing prices.
Danish biotechnology company Genmab was a standout performer, rising 7.7% to a three-year high following encouraging results from a late-stage study of a lymphoma treatment developed with AbbVie.
The study evaluated Epkinly alongside standard treatment in patients newly diagnosed with diffuse large B-cell lymphoma. The combination reduced the risk of disease progression or death by 51% compared with standard care alone, The Wall Street Journal reported. Genmab and AbbVie intend to discuss the findings with regulators as they consider their next steps.
Bond markets also offered some relief. Eurozone yields eased after reaching elevated levels last week, while the gap between French and German 10-year yields narrowed. Investors were reassessing the sharp increase in the premium demanded to hold French debt.
The recovery follows a difficult period for European equities. The STOXX 600 fell 2.5% in September, recording its first monthly decline in six months as rising bond yields reduced the appeal of riskier assets.
At the start of October, another jump in global borrowing costs pushed European shares to their lowest closing level in more than three months. Higher interest rates increase financing costs for businesses and mortgage borrowers, while adding to governments’ debt-servicing burdens.
Tuesday’s advance showed renewed investor appetite following those losses, although concerns over inflation, public finances and political uncertainty continued to limit confidence in a sustained recovery.
