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European main share indices rose on Tuesday, supported by a jump in shares of healthcare giant Novo Nordisk, though gains were capped by worries of further interest rate hikes by major central banks in the face of slowing economic growth.

The pan-European STOXX 600 index closed 0.4% up. On Monday, the index shed 0.5% as data pointing to tepid U.S. business activity sparked profit-taking following gains the prior week.

Defensive healthcare stocks added 1.2%.

Danish drug developer Novo Nordisk jumped 4.1%, as trading resumed following a holiday in Copenhagen on Monday. The company said it had started talks to buy a controlling stake in medical device designer Biocorp. The French company’s shares surged 15.7%.

Hawkish comments from European Central Bank (ECB) President Christine Lagarde and Bundesbank President Joachim Nagel on Monday cemented expectations for further rate hikes from the central bank in June.

Dutch central bank chief Klaas Knot said that underlying price pressures in the euro zone may prove more difficult to tame but monetary policy is showing signs of effectiveness and further rate hikes must be done step by step.

These comments come even as the U.S. money markets bet on the Federal Reserve skipping raising rates this month.

“We are potentially heading towards a more risk-off environment again,” Stuart Cole, head macro economist at Equiti Capital said.

“I can see a scenario where the growth outlook is looking increasingly challenging in both Europe and the U.S. and that suddenly central banks will find themselves facing the dilemma of the need to support growth too.”

Retail sales in the euro zone were unchanged in April, data showed, as consumers spent less on food and car fuel, but increased purchases of other products, particularly online.

The STOXX 600 index has started the month on a lacklustre note as attention shifts toward high-profile central bank meetings next week, including the Fed and the ECB.

Oil & gas stocks slipped 0.3%, tracking weak crude prices, while rate-sensitive technology stocks eased 0.2%

BKW plunged 12.2% to the bottom of the STOXX 600 after UBS double-downgraded its rating on the Swiss energy firm to “sell” from “buy”.

Idorsia added 2.2% after it entered into strategic talks with an undisclosed party to sell its businesses in the Asia Pacific region, excluding China, for up to 400 million Swiss francs ($441 million).

Eni slipped 0.9% after industry sources said it had entered exclusive talks to acquire private-equity backed gas and oil producer Neptune Energy after slightly sweetening its previous offer to below $6 billion.

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