Technology stocks drag European shares lower; profit is central

European shares hit a two-week low on Wednesday as higher stock valuations continued to make global investors nervous, while Novo Nordisk slumped after the drugmaker made a gloomy forecast. The pan-European STOXX 600 index fell 0.4% to 568.10 as of 0811 GMT, trading at levels last seen on October 17 for a second straight session.

Technology stocks were the biggest sector decliners, down 1.3%, while stocks often seen as safe havens, such as food and beverage, were marginally higher.

Valuation fears resurfaced this week on Wall Street and in Asian markets, which have posted record highs this year, driven largely by enthusiasm for artificial intelligence. Comments from major US banks on Tuesday further fueled these concerns.

Meanwhile, profit figures across the continent were also the focus.

Novo Nordisk fell 2% in choppy trading after the Wegovy maker cut its full-year profit forecast in an early blow to the Danish drugmaker’s new CEO amid a deep restructuring to regain lost ground in a fierce battle in the obesity drug market. Ambu fell 12% after the Danish endoscopy solutions maker reported quarterly results below consensus. Vestas reported third-quarter operating profit that beat expectations, sending the wind turbine maker’s shares up 10%.