# European shares edge higher on healthcare lift, weak China data stokes worries
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-15
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: European Shares Near Two-Month Highs on Healthcare and
Meta Description: Explore the latest market trends as European shares rise on defensive sectors such as healthcare and consumer staples amid Chinese economic slowdown.
URL: https://financedigest.com/european-shares-edge-higher-on-healthcare-lift-weak-china-data-stokes-worrieshtml

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By Sruthi Shankar

(Reuters) -European shares hovered near two-month highs on Monday, as signs of a slowing Chinese economy prompted investors to turn to defensive sectors such as healthcare and consumer staples typically seen as immune to business cycles.

The pan-European STOXX 600 rose 0.4% in morning trade. The benchmark index was trading [close to levels needed to recoup all of its June losses](https://www.financedigest.com/galois-capital-flagship-fund-to-close-after-ftx-losses.html "Galois Capital flagship fund to close after FTX losses") when fears about aggressive U.S. interest [rate hikes](https://www.financedigest.com/dollar-firms-after-u-s-labor-data-suggests-more-rate-hikes.html "Dollar firms after U.S. labor data suggests more rate hikes") and recession dominated the sentiment.

Healthcare stocks provided the biggest [boost](https://www.financedigest.com/biotech-stocks-pin-bounce-back-hopes-on-ma-boost.html "Biotech stocks pin bounce back hopes on M&A boost") to European stocks on Monday. AstraZeneca rose 2.4% after the drugmaker said its cancer drug, Enhertu, developed with Japan’s Daiichi Sankyo delayed the progression of a form of advanced [breast cancer](https://www.financedigest.com/pmrs-report-on-global-triple-negative-breast-cancer-treatment-market.html "PMR’s Report on Global Triple Negative Breast Cancer Treatment Market") in previously treated patients.

Food and beverage and utilities rose about 0.7% each to [lead morning gains](https://www.financedigest.com/ftse-100-opens-higher-informa-leads-gains.html "FTSE 100 opens higher, Informa leads gains").

Those gains helped counter losses in China-exposed automakers and miners after the country’s central bank cut [key lending rates in a surprise move to revive demand as data](https://www.financedigest.com/2023-fintech-prediction-secure-and-private-data-usage-is-key.html "2023 FinTech Prediction: Secure and Private Data Usage is Key") showed the economy unexpectedly slowing in July.

Initially, it is seen as encouraging the economy, but if you’re cutting rates it can also be seen as admitting your economy needs help,” said David Madden, market analyst at Equiti [Capital at London](https://www.financedigest.com/london-the-capital-of-cyber-crime-in-the-uk.html "London: the capital of cyber crime in the UK").

Retail sales, fixed asset investments and also industrial production, they’re all caving in and the [expectation is just kind of confirming the idea that their economy](https://www.financedigest.com/german-economy-expected-to-grow-modestly-in-2023-european-commission.html "German economy expected to grow modestly in 2023 – European Commission") is coming off the boil.

European [stock markets have rallied](https://www.financedigest.com/asian-stocks-rally-as-bank-jitters-calm-alibaba-lifts-mood.html "Asian stocks rally as bank jitters calm, Alibaba lifts mood") off their June lows, echoing an upbeat sentiment on Wall Street, as signs that U.S. inflation may have peaked encouraged investors to [scale back](https://www.financedigest.com/mifid-ii-why-you-should-not-scale-back-your-implementation-efforts.html "MIFID II: WHY YOU SHOULD NOT SCALE BACK YOUR IMPLEMENTATION EFFORTS") bets of aggressive rate hikes by the Federal Reserve.

Meanwhile, [German wholesale prices fell by 0.4% in July compared with the previous month](https://www.financedigest.com/inflation-in-key-german-states-eases-for-second-month.html "Inflation in key German states eases for second month"), the first decline since Oct. 2020, the Federal [Statistical Office reported](https://www.financedigest.com/pharmaceutical-contract-sales-outsourcing-market-statistics-demand-and-forecasts-to-2031-examined-in-new-research-report.html "Pharmaceutical Contract Sales Outsourcing Market Statistics, Demand and Forecasts to 2031 Examined in New Research Report"), driven in part by cheaper prices of grain, raw tobacco, seeds and feedstuffs.

The STOXX has climbed over 10% since hitting a [year low](https://www.financedigest.com/analysis-euros-20-year-low-leaves-ecb-facing-costly-choices.html "Analysis-Euro’s 20-year low leaves ECB facing costly choices") in June, but remains down 9.3% for the year.

Among other stocks, HelloFresh jumped 8% after the German meal-kit maker confirmed its mid-term targets and said it was “cautiously optimistic” about the second [half of the year](https://www.financedigest.com/an-apple-a-year-half-of-iphone-users-will-upgrade-to-the-iphone-7.html "AN APPLE A YEAR: HALF OF IPHONE USERS WILL UPGRADE TO THE IPHONE 7").

Henkel slipped 0.1% as the [German consumer goods group said the surging cost of materials hit](https://www.financedigest.com/cash-loving-germans-fret-over-exploding-atms-as-cross-border-crime-wave-hits.html "Cash-loving Germans fret over exploding ATMs as cross-border crime wave hits") earnings in the first half of the year.

(Reporting by Sruthi Shankar and Johann M Cherian in Bengaluru; Editing by Sriraj Kalluvila)


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