Markets in Europe Hit 5 Year Lows Whilst Novo Nordisk Tops the Charts

Zoe Burt
September 11, 2023
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A Brief Overview:

① UK & Europe: 5 Year Low

② Americas: Apple Takes A Hit

③ Asia & Australasia: Strained Relationships

④ Stock World: Novo Nordisk Takes Top Spot

UK & Europe: 5 Year Low

The market index Euro Stoxx 600 hit seven days of consecutive losses, their biggest losing streak since 2018. 

Meanwhile Germany suffered particularly on the back of weak manufacturing data, as well as flat inflation figures. 

Christine Lagarde, the president of the European Central Bank, gave a talk in London mid week, in which she failed to provide further indications on the potential interest rate hikes. She equally gave no positive indications. 

The UK however is widely expected to raise rates at their next meeting in the coming weeks, which has greatly affected sentiment. 

Mining and commodity stocks fell on the back of weak Chinese data, which furthered losses on markets. 

Markus Spikse / Unsplash

Americas: Apple Takes A Hit

US markets also had a week in the red, with a multitude of events hitting stock valuations. 

Oil prices rose beyond the $90 a barrel mark, which is a strong physiological barrier. The price hike was driven by OPEC+ agreeing to continue with export supply controls. 

Strikes at LNG mines in Australia also helped to further drive prices up, sparking fear that the perilous inflation situation could be once again disrupted. 

Many fear that the Federal Reserve’s meeting next week will increasingly be likely to include another interest rate hike. 

Meanwhile, Apple shares tumbled on the back of news that China had banned the Apple iPhone in Government buildings. 

This drove other tech companies in the sector down, amidst fears of strained relationships between the US and China. 

In brighter news, last week was a bumper week for corporate bond releases, in the top 10 ever seen. 

Many analysts believe that this is due to a common ‘calm before the storm’ effect, as we await interest rate decisions. 

Amjith Smith / Unsplash

Asia & Australasia: Strained Relationships

Hong Kong took the unusual move to close the city and the stock exchange on Friday due to the heaviest rains since 1884. Markets were already down for the week but no further sell off could take place. 

Meanwhile, China added further strains to their relationship with the US by banning iPhones in their government offices. 

A new Huawei phone was also released, provoking further reports that China had used American technology to be able to produce the model. 

Last week also marked a notable depreciation in both the Chinese Yuan and the Japanese Yen when compared to the US dollar, suggesting a sense of economic vulnerability across the region.

Felix Lannoo / Unsplash

Stock World: Novo Nordisk Takes Top Spot

Novo Nordisk, a Danish pharmaceutical company, saw shares shoot up 30% last week after announcing a successful drug trial. 

The drug in question is names Wegovy, a weight loss drug that should further help with diabetes and heart disease. 

Their shares are up already 40% for the year, but the successful UK trial of Wegovy caused their shares to go sky high, landing Novo Nordisk the top spot in the European charts. 

Their market capitalisation exceeded that of French luxury goods maker LVMH, which had held the top spot since 2021. 

Now standing at $429 billion, their market cap is so large it exceeds the GDP of their native Denmark. 

With share prices shooting up, Novo Nordisk took the decision to undergo a 2-for-1 stock split, which will reduce the stock value and increase the appeal for investors. 

Sam Moghadan / Unsplash

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