© Reuters. Overview of the Frankfurt Stock Exchange. May 4, 2023 REUTERS/Staff
(Reuters) – After a muted start, European stocks gained ground, with Swiss stocks leading gains in Europe following a forecast update by pharmaceutical group Novartis (SIX:), albeit a drop in telecom stocks limit earnings.
At around 11.20am, it was up 0.2% after yesterday’s losses as disappointing Richemont results and weak economic data from China hit the European luxury sector.
Novartis jumped 4.1% after the pharmaceutical company raised its full-year earnings forecast and planned to spin off its generics division Sandoz for the start of the fourth quarter.
The move sent the Swiss Market Index, which yesterday led regional declines in Europe, up 0.6%.
The European healthcare sector, up 0.5%, was also supported by 3.9% gains from Swedish Orphan Biovitrum (Sobi) after the biopharmaceutical company’s second-quarter earnings beat estimates.
Weighing on the broader STOXX 600 are telecommunications companies, down 1.5%, with Tele2 AB plunging 10% to a five-year low after “mixed” second-quarter results.
Among other stocks, Ocado jumped 13.7% to the top of the STOXX 600, after the British supermarket group returned to posting underlying profit in the first half and met its full-year forecast.
Husqvarna dropped 0.9% even after reporting a quarterly operating profit in line with market expectations.
(Translated by Chiara Bontacchio, editing Stefano Bernabei)