TLDR
- European shares rose about 1% on Tuesday, led by gains in healthcare stocks.
- Genmab jumped over 8% after positive late-stage trial results for a lymphoma treatment with AbbVie.
- Euro zone bond yields eased after a sharp rise tied to French fiscal worries.
- The euro stayed near a 17-month low as France’s debt and Spain’s snap election weighed on sentiment.
- Technoprobe gained after J.P. Morgan started coverage with an “overweight” rating.
European stock markets moved higher on Tuesday. The gains came after a rough start to the fourth quarter for global investors.
The STOXX 600 index rose close to 1%. Germany’s DAX added about 0.9%, while France’s CAC 40 gained 0.7% after falling the day before.
Spain’s IBEX 35 climbed 1.2%. This came even as investors reacted to news of a snap election called by Prime Minister Pedro Sanchez.
Healthcare stocks led the rally. The sector index rose 1.4%, the strongest gain among all sectors in Europe.
Genmab Leads Healthcare Gains
Danish biotech firm Genmab jumped more than 8%, hitting a three-year high. The move came after a late-stage study showed its combination treatment with AbbVie helped lymphoma patients.
GENMAB AND ABBVIE SAY EPCORITAMAB IN COMBINATION WITH R-CHOP DEMONSTRATED A STATISTICALLY SIGNIFICANT IMPROVEMENT IN PROGRESSION-FREE SURVIVAL IN PATIENTS WITH NEWLY DIAGNOSED DIFFUSE LARGE B-CELL LYMPHOMA (DLBCL), WITH THE PHASE 3 TRIAL SHOWING A 51% REDUCTION IN THE RISK OF…
— First Squawk (@FirstSquawk) October 5, 2026
The study found the treatment reduced the risk of disease progression or death in newly diagnosed patients. This was seen as good news for both companies working on the drug.
Italian drugmaker Recordati also rose. Private equity firm CVC raised its takeover offer for the company to 53 euros a share.
Elsewhere, Italy’s Technoprobe gained after J.P. Morgan began coverage of the stock. The bank gave it an “overweight” rating, a sign it expects the shares to perform well.
Spain’s Neinor Homes rose over 4%. The property developer raised its outlook for 2026 and 2027 and announced new targets for 2028, along with a planned dividend.
Bond Yields Take A Breather
Euro zone bond yields eased on Tuesday after touching multi-decade highs the week before. The spread between French and German 10-year yields narrowed from last week’s peak.
Investors have been worried about France’s high debt levels and political gridlock in the country. Those concerns pushed yields sharply higher in recent sessions.
Higher yields raise borrowing costs for companies and mortgage holders. They also increase the interest burden on governments.
The euro stayed close to a 17-month low against the dollar. Analysts pointed to France’s fiscal troubles and political uncertainty across the region as reasons for the weakness.
Danske Bank analysts said Spain may end up rolling over its previous budget rather than passing a new one for 2027. They said this should keep debt levels on a declining path without hurting near-term growth.
Markets have also scaled back bets on more interest rate hikes from the European Central Bank. Traders now see an 80% chance of one more hike by year-end, down from expectations of several hikes earlier.
ECB Chief Economist Philip Lane said in an interview that high energy prices have not yet led to strong follow-on inflation effects. He said it was too early to say whether the region was in a worse-case inflation scenario.
Energy markets also saw some relief. Crude oil prices stabilized after dropping nearly 2% overnight, helped by a partial recovery in Middle East export flows and a G7 pledge to coordinate supply if needed.
Telecom Plus, the owner of Utility Warehouse, rose 4% after saying customer growth was running ahead of target in the first half of its fiscal year. Investors now turn their attention to euro zone retail sales data and the start of third-quarter earnings season next week.
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