FRANKFURT: European shares edged lower on Wednesday, as shares of Novo Nordisk slumped after the weight-loss drugmaker issued a bleak forecast, while investors tracked software shares and awaited a key inflation report. The pan-European STOXX 600 slipped 0.3percent to 616.14 points by 0920 GMT, with healthcare down 1.9percent and leading sector losses.
Novo Nordisk’s shares tumbled 18percent and were on track for their biggest one-day drop since July 2025. The Danish company said it expects its sales and operating profit in 2026 to fall year-on-year, strained by price pressures in the US as it battles a competitive weight-loss drug market.
“Even though demand for weight loss drugs is expected to continue to soar, it’s just the fact that there are many more new entrants and there’s a demand for cheaper pricing. So whereas Novo was the top dog, there are so many others biting at its heels and bringing it down,” said Susannah Streeter, chief investment strategist at Wealth Club. Denmark’s stock index slid 7.9percent an was on track for its biggest daily fall since July 2025.
Investors were also evaluating the potential repercussions of AI developer Anthropic’s launch of plug-ins for its Claude Cowork that analysts said could disrupt the software business worldwide. Tech and media stocks fell 1.8percent and 1.6percent, respectively, adding to their steep declines on Tuesday.
“There is a lot of uncertainty around exactly what AI agents can do, and as such investors are choosing to shun the software market altogether, leaving nowhere to hide,” said Ben Barringer, head of technology research at Quilter Cheviot. It was also a big day for bank earnings across the continent. Credit Agricole fell 3.2percent after the French bank reported a 39percent fall in fourth-quarter profit, hit by a one-off charge related to its increased stake in Italy’s Banco BPM.
UBS posted a 56percent surge in net profit above analysts’ estimates on strong performances from its wealth management and investment banking divisions, and announced plans for more share buybacks. However, its shares dropped 4.3percent.
Europe’s biggest lender Santander fell 3.6percent after the Spanish bank announced it would buy US regional lender Webster Financial in a USD12.2 billion deal.
Investors also awaited January eurozone inflation data due later in the day, that economists expect would be below the European Central Bank’s 2percent target, ahead of an interest rate decision on Thursday.
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