August 5 (Reuters) – European shares rose on Wednesday as investors monitored corporate earnings and diplomatic efforts to end the U.S.-Iran war and reopen the blockaded Strait of Hormuz.
The pan-European STOXX 600 index rose 0.4% to 659.29 by 07:20 GMT.
Sentiment was supported as markets awaited signs of progress in the U.S.-Iran negotiations.
U.S. President Donald Trump said his administration had “very good discussions” with Iran during all-day negotiations, fuelling expectations of an imminent end to the five-month conflict.
Mining shares led gains on the benchmark with a 2.4% rise.
Earnings commanded investors’ attention. Novo Nordisk raised its full-year profit and sales outlook but disappointed investors who focused instead on a narrow sales miss for its new Wegovy pill and a trial setback for its next-generation obesity drug CagriSema. Shares of the Danish drugmaker dropped 3.5%.
Novo is trying to regain ground from rival Eli Lilly in the fast-growing obesity-drug market, with investors watching for signs that its recent turnaround can be sustained and that the Wegovy pill can support longer-term growth.
On the flip side, Sandoz rose 7% after the Swiss generic drug maker reported a 9% jump in second-quarter net sales.
Among others, Siemens Energy gained 3.9% after the energy provider posted record third quarter results on AI data centre boom and Middle East demand.
(Reporting by Tharuniyaa Lakshmi in Bengalurui; Editing by Mrigank Dhaniwala and Janane Venkataraman)
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