Bayer Shares Surge 11% as U.S. Government Supports Curbing Roundup Lawsuits – European Markets Edge Higher

European stocks inched higher on Tuesday as investors cautiously stepped back into markets following a broad sell-off at the start of December. By mid-morning in London, the pan-European Stoxx 600 hovered just above the flatline, with major indices including the FTSE 100, DAX, and CAC 40 all recording modest gains. Utilities stocks led the early charge, reflecting their reputation as a safe haven amid market volatility.

UK banks saw notable gains as the Bank of England released results from its 2025 stress test, the first adjustment in a decade to capital requirements. The central bank confirmed that all major banks could withstand severe economic shocks, reassuring investors about the sector’s resilience. Metro Bank shares rose 2.1%, while Lloyds Banking Group added 1%, as traders digested the news alongside expectations of potential interest rate cuts later this month.

In corporate news, Bayer’s stock surged 11.3% after the Trump administration backed efforts to limit litigation over the company’s Roundup weedkiller. The German biotech giant has faced thousands of lawsuits claiming the product causes health issues, including cancer. U.S. Solicitor General D. John Sauer urged the Supreme Court to preempt certain state-level claims, a move hailed by Bayer CEO Bill Anderson as critical for U.S. farmers and broader economic stability.

Investors remain attentive to central bank decisions as the U.S. Federal Reserve hints at a potential rate cut in early December, while the Bank of England monitors for international spillover effects. Analysts note that persistent inflation could delay policy adjustments, but economists broadly anticipate easing measures amid cooling growth and a weakening labor market in the UK.

Elsewhere in Europe, Spanish lender Santander rose 1% after selling a stake in its Polish subsidiary, while wind energy giant Orsted and utilities firm EDP gained early in the session. Traders are also eyeing upcoming European economic data, including unemployment figures from Spain and Italy and EU-wide inflation metrics, which could set the tone for markets heading into the final month of 2025.

source: cnbc