Denmark’s benchmark inventory index has fallen 21% from its September excessive, making it the primary main European index to enter a bear market as tariff-related dangers and a stoop for Novo Nordisk A/S weigh.
The OMXC25 Index closed down 2.4% on Thursday, sliding alongside different main European benchmarks, after US President Donald Trump introduced sweeping world tariffs. Shares in logistics firm DSV A/S and jewellery maker Pandora A/S have been the largest drags on the benchmark.
A 25% slide for index heavyweight Novo Nordisk A/S this 12 months has additionally pressured the gauge, with the drugmaker harm by disappointing prescriptions knowledge for its weight problems medicines in addition to drug trial setbacks.
“Denmark is a small open financial system. When globalization is nice, it’s good for Denmark — and vice versa,” mentioned Per Hansen, funding economist at Nordnet AB, noting that just about a fifth of exports are to the US. Novo’s drop can be necessary, particularly as Danish shares had develop into “richly valued,” he added.
Novo shares simply closed out their worst month in additional than twenty years. Together with poor prescriptions traits within the US, the drugmaker reported disappointing knowledge from a trial for its weight-loss capsule monlunabant final 12 months, adopted by outcomes for a separate experimental shot known as CagriSema that missed its personal expectations.
Different main drags on the index this 12 months embody wind-power and renewables corporations Vestas Wind Methods A/S and Orsted AS.
“OMXC25 is dominated by life science together with inexperienced transition. For these sectors there have been bumps alongside the highway,” Nordnet’s Hansen added.
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