Stoxx 600 Reaches Record High Driven by Novo Nordisk’s Wegovy Approval; European Markets Poised for Soft Holiday Session

This analysis is based on the CNBC report [1] published on December 24, 2025. On December 23, the pan-European Stoxx 600 index closed at a new all-time high of 588.73 (+0.34% daily), driven primarily by a 7.3% rally in Copenhagen-listed Novo Nordisk’s shares [0][3]. This surge followed the U.S. FDA’s December 22 approval of an oral pill version of the company’s blockbuster weight-loss drug Wegovy [4]. The day after (December 24), European markets entered a shortened holiday trading session, leading to muted price movements—with the Stoxx 600 up just 0.1% intraday [2]—as investors paused after the prior day’s rally. Novo Nordisk’s U.S.-listed ADR (NVO) closed at $52.40 on December 24, down 0.86% on light volume (11.68M shares, vs. 67.56M on December 23), reflecting profit-taking [0]. Additionally, on December 23, the U.S. CMS unveiled a voluntary program to expand GLP-1 drug coverage under Medicare and Medicaid, further enhancing market access for Novo Nordisk and peer manufacturers [5].

1. Pharma Regulatory News Driving Broad Market Performance
   : The FDA’s approval of oral Wegovy (a healthcare sector development) had a direct and significant impact on the Stoxx 600’s record high, demonstrating the interdependence of sector-specific news and broader equity indices [0][1][4].
2. Policy Tailwinds for Long-Term Market Access
   : The CMS’s expansion of GLP-1 drug coverage provides medium-term support for Novo Nordisk’s revenue growth by increasing patient access to its treatments [5].
3. Investor Sentiment Reflected in Trading Volume
   : Novo Nordisk’s December 23 trading volume (67.56M shares) was approximately 4x its December 22 volume, indicating strong investor confidence in the FDA approval [0].
4. Stoxx 600’s YTD Performance Context
   : The index is up ~16% in 2025 (on track for its strongest annual performance since 2021), supported by easing interest rates and portfolio shifts away from U.S. tech stocks [2].

• Risks
  :
  • Short-term profit-taking pressure on Novo Nordisk’s shares following the sharp December 23 rally, particularly in low-volume holiday sessions [2].
  • Competitive threats from Eli Lilly’s pending oral GLP-1 approval, which could erode Novo Nordisk’s market share [4].
  • Regulatory/pricing risks associated with CMS coverage terms, which may include price concessions reducing profit margins [5].
• Opportunities
  :
  • Expanded addressable market for Novo Nordisk via the oral Wegovy formulation, which is expected to boost patient adherence [4].
  • Policy support from the CMS program enhancing long-term GLP-1 drug demand [5].
  • Continued momentum in European equities as the Stoxx 600 extends its YTD gains [2].

• Stoxx 600
  : December 23 closing price of 588.73 (record), +0.34% daily; December 24 intraday gain of 0.1% [0][2].
• Novo Nordisk (NVO)
  : December 23 gain of 7.3% to $51.61; December 24 close of $52.40 (-0.86%) on light volume [0][3].
• Key Events
  : U.S. FDA approval of oral Wegovy (December 22); U.S. CMS GLP-1 coverage expansion (December 23); shortened European holiday trading session (December 24) [1][4][5].