STOCK EXCHANGE: Novo Nordisk plunges 19 percent – pressures the market with software companies

Stock markets were rising on Wednesday morning in Europe. The Copenhagen Stock Exchange was in a clear decline, while the largest company on the stock exchange Novo Nordisk was about 19 percent down to 299.25 DKK.

Turnover will decrease by 13 percent this year compared to last year, Novo Nordisk estimates. According to the company, the background is the pressure from the US administration to lower the prices of medicines.

Novo Nordkis published its result scheduled for Wednesday morning surprisingly already on Tuesday evening. The result exceeded analysts’ expectations, but the guidance was disappointing.

Novo Nordisk fell sharply last year due to the tightening of competition, copycat drugs entering the market, weak research results and profit warnings.

Late last year, the pill form of the company’s weight loss drug Wegovy received approval from the US Food and Drug Administration, which boosted the stock.

The software and service industry weighs on the stock market

The Stoxx Europe 600, which follows the price development of shares of six hundred European listed companies, was around yesterday’s closing reading shortly after the start of trading.

The Paris Cac 40 was up 0.7 percent. Frankfurt’s Dax was up 0.3 percent, London’s FTSE 100 was down 0.5 percent and Madrid’s Ibex 35 was down 0.3 percent.

The Stoxx Europe 600 index tried to be pulled down especially by the health sector, but the lion’s share of this was due to Novo Nordisk. The second hardest decline was the technology sector, where software and service companies had the strongest decline.

For example Asseco Poland was 3.4 percent, Indra Systems 2.5 percent, Reply 2.0 percent and SAP 1.5 percent down.

Anthropic’s software spooked investors

Software companies fell sharply yesterday, which was reflected in the Stoxx Europe 600 stock index. When looking at the index by sector, the technology sector ended up with the hardest decline at 3.1 percent.

The technology sector is divided into three subsectors, of which the software and service sector ended up with a 5.4 percent decrease. The semiconductor sector fell by 2.7 percent and the hardware and supplies sector by 0.1 percent.

Shares of software companies took a hit yesterday in the US and today in Asia.

A start-up company focusing on artificial intelligence is contributing to the concerns Anthropicin published by a tool for lawyers. After the news, software companies linked to law firms began to decline and the development spread to software companies in other sectors.

The tool can perform office tasks such as reviewing legal documents.

Earnings season in full swing

The price of oil was on a gentle rise today when the United States shot down an Iranian drone that was on its way to a US aircraft carrier in the Arabian Sea, Bloomberg reports.

The price of gold rose back above $5,000 per troy ounce. The price of gold has fluctuated strongly in recent days, as investors have assessed whether the price of the precious metal has risen too drastically.

The earnings season is starting to speed up. Wednesday’s results announcers from the Helsinki Stock Exchange are Stora Enso, UPM-Kymmene, Wärtsilä and The Bank of Åland. From the United States it is heard that Google is known Alphabetin of the result.

There will be plenty of earnings announcers at the Helsinki Stock Exchange tomorrow. For example Endomines, Fiskars, Kesko, Konecranes, In this and Sampo. In the United States, it’s the market leader of data centers Amazon.

The European Central Bank will announce its interest rate decision tomorrow. Like previous decisions, the decision should come at 3:15 p.m.