Monday, European stocks edged higher, with the healthcare sector being a major support. This came after data showed that the weight-loss drug Wegovy from Danish pharmaceutical giant Novo Nordisk (NVO.US) had better heart protection effects than similar competing products from US-based Eli Lilly (LLY.US), leading to a rise in its stock price.

As of the time of writing, the pan-European Stoxx 600 index was up 0.29% at 551.72 points. Last Friday, the index had just experienced its first weekly decline in four weeks.

Among sectors, healthcare was one of the best-performing sectors of the day. As the fourth-largest healthcare company in the Stoxx index, Novo Nordisk's stock price climbed nearly 3%. This followed the company's release of real-world comparative data showing that Wegovy (semaglutide) reduced the risk of heart attack, stroke, or death by 57% compared to competing drugs Mounjaro (tirzepatide) and Zepbound (tirzepatide injection) from Eli Lilly.

The European defense sector also performed well, gaining 1.2%. Among the gainers, BAE Systems' stock rose 2% after Norway announced it had chosen the UK as its strategic partner for the procurement of new frigates, a deal worth around £10 billion (approximately $13.51 billion).

Last Friday, a US federal appeals court ruled that most of the tariffs implemented by former US President Donald Trump were illegal but allowed them to remain in effect until mid-October to allow time for further appeals. It is worth noting that as the day coincided with a US holiday, market trading volume was expected to remain low throughout the day.