Novo Nordisk shares fell sharply on Monday after its US rival Eli Lilly released positive trial results for a weight loss pill. This raised fears of increased competition in the lucrative obesity market. The drop in Novo Nordisk’s shares contributed to a broader decline in European markets.
The German share price index DAX saw a significant dip at the stock exchange in Frankfurt. In other news, Swiss insurers Helvetia and Baloise announced a merger. The deal is set to create Switzerland’s second-largest insurance group.
Market participants are also closely watching the eurozone consumer confidence report. The report is scheduled for release at 1400 GMT. Former President Donald Trump has added to the market’s volatility with his recent criticism of Federal Reserve Chair Jerome Powell.
Trump stirs market concerns
Trump’s unpredictable approach to tariffs has already caused fluctuations in global markets. This has prompted investors to seek refuge in safer assets such as gold.
Despite the recent declines, European markets are expected to open positively after the long weekend. The UK’s index is forecast to open 60 points higher. Germany’s is expected to be up by 253 points.
France’s is predicted to open 81 points higher. Italy’s is forecast to open 441 points higher, according to IG data. Traders will also keep a close watch on discussions at the IMF-World Bank Spring meetings in Washington.
U.S. trade policies are likely to be a major point of concern at these meetings.
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