AI and Ozempic Were Europe’s Winning 2023 Stock Market Themes While Luxury Stalled

  • Chip stocks, Novo Nordisk and Rolls-Royce rallied this year
  • Luxury firms struggled while renewable energy shares slumped
Obesity Drug Market in Focus
Lock
This article is for subscribers only.

The frenzy around weight-loss drugs and artificial intelligence, followed by a late-year market rally, made 2023 memorable for European stocks. For investors in renewables and some big luxury names, it was more of a year to forget.

“Winners — and losers — have reflected global trends rather than local macro events,” said Lewis Grant, senior portfolio manager for global equities at Federated Hermes. The hype around obesity drugs that boosted Novo Nordisk A/S has been a worldwide phenomenon, while moves in luxury shares were driven by concerns about China’s economy.