European stocks down after Novo's weak forecast, software companies slide

• Energy stocks rose 1.3% on higher crude prices amid U.S.-Iran geopolitical tensions, helping offset broader market losses
• European tech and media stocks fell 0.3% and 0.5% respectively, extending Tuesday's steep declines triggered by AI competition fears
• Investors await January eurozone inflation data expected at 1.7%, below the European Central Bank's 2% target

European Markets Summary

Market Performance:

European stocks showed mixed performance on February 4, 2026, with the pan-European STOXX 600 flat at 618.26 points as of 0812 GMT. The Danish stock index plummeted 7.8%, heading for its largest single-day decline since July 2025, primarily driven by Novo Nordisk's disappointing forecast.

Sector Movements:

Healthcare stocks led losses, falling 1.9%. Energy stocks provided support with a 1.3% gain, buoyed by rising crude prices amid escalating U.S.-Iran geopolitical tensions. Technology and media sectors declined 0.3% and 0.5% respectively, extending losses from the previous session.

Key Drivers:

Novo Nordisk's weak outlook severely impacted Danish markets and the broader healthcare sector. European software companies remained under pressure following Tuesday's sharp selloff triggered by Anthropic's launch of new plug-ins, which heightened fears of AI-driven disruption across the software industry.

Economic Data Watch:

Investors awaited January eurozone inflation figures due later in the session. Economists polled by Reuters forecast inflation at 1.7%, below the European Central Bank's 2% target, suggesting continued easing of price pressures.

Market Outlook:

The mixed performance reflects competing forces: healthcare sector weakness and AI-related technology concerns offset by energy strength. The anticipated inflation data could influence ECB monetary policy expectations and provide further market direction. The significant decline in Danish stocks underscores the outsized impact of Novo Nordisk on regional indices, while ongoing AI disruption concerns continue weighing on technology valuations.