European shares gain as Genmab jumps, bond yields retreat

European shares climbed to near one-week highs on Tuesday, led by gains in healthcare stocks, including Genmab. Meanwhile, euro zone bond yields took a breather after surging due to concerns over fiscal and inflation risks. The STOXX 600 index, which tracks European stocks, rose 0.8% to 638.41 points by 07:27 GMT, indicating a potential third consecutive day of gains.

Genmab's stock surged 7.6% to become the top performer in the STOXX 600 index after the Danish biotech company and US pharmaceutical giant AbbVie's blood cancer drug combination demonstrated in a late-stage study that it reduced the risk of progression or death. The broader healthcare sector also rose 1.6%.

Investors are now focusing on upcoming economic data from the euro zone, such as retail sales figures and the UK S&P Global PMI survey, which could provide insights into consumer spending and Britain's economic activity. The euro was trading near a 17-month low, pressured by political uncertainty following Spanish Prime Minister Pedro Sanchez's decision to call a snap election on Monday.

Additionally, the French government's plan to implement an unpopular 2027 budget aimed at reducing its deficit has caused a decline in bond prices. Despite these challenges, euro zone bond yields eased, after reaching multi-decade highs last week. Other notable movements in the market included Italy's Technoprobe, which rose 2.3% after J.P. Morgan initiated coverage with an "overweight" rating.