European Stocks Eye Biggest Weekly Drop Since 2023 as Novo Sinks

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European stocks slid for a second day, putting the benchmark gauge on course for its biggest weekly decline in more than three months, as investors braced for a more hawkish outlook for US interest rates.

December 20, 2024 at 3:12AM EST -- European stocks slumped for a second day, on course for the biggest weekly decline since March 2023. Danish drugmaker Novo Nordisk A/S sank 29% — the most on record — as a study showed underwhelming results from its obesity drug trial.

Novo is Europe’s biggest company by market capitalization and the second-heaviest weighted member in the Stoxx 600. The benchmark Stoxx 600 is now up less than 4% in 2024, sharply underperforming US peers. A rally in the index faltered this month as the Federal Reserve indicated it could slow the pace of easing next year as its 2% inflation target remains out of reach. Trade concerns are also rising, with US President-elect Donald Trump threatening the European Union with tariffs if its member countries don’t buy more American oil and gas.

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