European markets rise; Novo Nordisk shares up 3.5%

European stocks were higher on Friday, as regional markets reopened following a closure for the Christmas holiday.

The pan-European Stoxx 600 index was 0.2% higher at 8:40 a.m. London time, with most sectors and major bourses in positive territory.

Shares of Danish pharmaceutical giant Novo Nordisk gained 3.5% during morning deals, sending the company to the top of the Stoxx 600. The firm’s stock was continuing a rally that began earlier this week, as it staged a recovery from a major selloff that saw shares plummet 20% in a single session last week.

Elsewhere, investors are monitoring economic data out of China, where official figures showed industrial profits in the world’s second biggest economy contracted for the fourth consecutive month in November.

The data print came a day after the World Bank raised its growth forecasts for China in 2024 and 2025, but warned that the country’s economy would remain under pressure, given muted business confidence and ongoing uncertainty in the troubled Chinese property sector.

Markets were in mixed territory overnight in Asia, as traders reacted to the latest Chinese data print, as well as recent inflation numbers out of Japan. In an update on Friday, official figures showed core inflation in the city of Tokyo was at 3% in November, up from 2.6% in October.

Back in Europe, Spain and Norway are set to publish their November retail sales figures on Friday.