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European Markets Close Higher Ahead of Christmas Break; Novo Nordisk Rebounds

Prime Highlights: 

European Markets Close Higher: The Stoxx 600 gained 0.2 percent as technology stocks, boosted in the past by the advancement of the U.S. tech market, supported the index. 

Novo Nordisk Rebounds: Shares of the Danish pharmaceutical company surged 5.7%, recovering from last week’s sell-off on disappointing trial results for its CagriSema weight-loss drug. 

AstraZeneca Withdraws Lung Cancer Drug Application: The pharma firm pulled its lung cancer treatment application from European marketing based on a note sent back by the European Medicines Agency. Meanwhile, AstraZeneca shares managed to recover marginally and inch 0.1% up. 

Key Background: 

European stock markets closed higher on Tuesday, December 24, as trading volumes were lighter ahead of the Christmas holiday. The pan-European Stoxx 600 index closed 0.2% up, supported by gains in the technology sector, which had seen positive momentum following strong performances by U.S.-listed tech stocks earlier in the week. 

FTSE 100 of the UK and CAC 40 of France both closed positive for the day with widespread sectoral advancement, but German DAX along with Italian FTSE MIB were marginally negative. It was a day of jovial trading in the session with investors being in upbeat mood as the Christmas vacation is approaching. 

In the pharmaceutical area, Novo Nordisk surged by 5.7% for Stoxx 600’s highest gains after its shares were bailed out from a sudden sell-off last week. These followed disappointing results from clinical trial of its CagriSema weight-loss drug. At the same time, Britain-based AstraZeneca said it withdrew its marketing application for the European continent for its lung cancer therapy, datopotamab deruxtecan after advice given by the EMA. The company followed a disappointed outcome from early-stage trial results and the shares of the company went up 0.1% by trading close. 

Anglo American, the world’s largest mining company, saw its shares rise by 2% despite facing legal challenges in Chile related to allegations of environmental damage at its Los Bronces copper mine. Reports suggest that the company could face fines of up to $17 billion. However, Anglo American asserted that all its operations are in full compliance with legal regulations and denied any involvement in illegal activities. 

The flip side saw UK homebuilder Vistry Group plunge by as much as 16% in its stock price following a cut in the group’s profit guidance for the year. The group cited delays in year-end transactions and completions for reducing its forecasted adjusted profit. Trading volumes are