European shares inch up on pharma boost, set to post second weekly gain

Bengaluru: European shares edged up on Friday, hovering near a nine-month high, as healthcare stocks rose and the British economy unexpectedly grew in November, with investors awaiting earnings from big U.S. banks.

The pan-regional STOXX 600 gained 0.2 per cent by 0811 GMT, while the UK's FTSE 100 added 0.4 per cent after data showed British economy eked out 0.1 per cent growth in November.

European shares were headed towards a second straight weekly gain, in an upbeat start to January and the new year, after data signalled a slowdown in inflation in the euro zone and the United States, which could allow central banks to slow the pace of their monetary policy tightening.

Rate-sensitive tech and retail stocks have led gains so far this year, up 13 per cent and 14.4 per cent, respectively, after a rough 2022 where fears of an economic slowdown and rising interest rates hammered these sectors.

On Friday, healthcare stocks provided the biggest boost to the index, with Novo Nordisk A/S and Roche Holding AG gaining more than 1.5 per cent in early trading.

Enel edged up after its CEO was quoted as saying the Italian power utility company could secure up to 5 billion euros ($5.4 billion) for investment from REPower EU energy funds in addition to 3.5 billion euros in EU recovery funds already won.

Shares of online gaming company Kindred Group dropped 16.6 per cent on profit warning for the fourth quarter.