European shares rise on healthcare boost, retreating bond yields

(Reuters) – European shares recovered in early trading on Monday, boosted by healthcare stocks, as bond yields declined with investors assessing key inflation data.

The pan-European gained 0.8% by 0826 GMT, after falling over 4% in the past two weeks.

Euro area sovereign bond yields dropped with investors reckoning markets broadly priced in a higher-for-longer outlook for policy rates.

Data showed consumer prices in the German state of North Rhine-Westphalia (NRW) fell by 0.1% month-on-month in October and were up by 3.1% year-on-year.

Another preliminary data showed Spain’s 12-month inflation in October was unchanged from the previous month at 3.5%.

The healthcare sector rose 1.1%, boosted by a 2.5% jump in Novo Nordisk (NYSE:).

Siemens Energy jumped 9% as close talks with Berlin over around 15 billion euros ($15.8 billion) in project-related guarantees continued over the weekend.

Dassault Systemes jumped 3.0% after JP Morgan upgraded the French software maker to “overweight” from “underweight”.

HSBC gained 1.2% after reporting a fresh $3 billion share buyback and a more than doubling of third-quarter profit.