European stocks rise, supported by the healthcare sector, as bond yields decline

European stocks rose in early trading on Monday, supported by health care shares, as bond yields fell while investors evaluated key inflation data.

By 0826 GMT, the European STOXX 600 index rose 0.8 percent after falling more than four percent in the past two weeks.

Sovereign bond yields in the euro zone fell as investors believed that markets were broadly influenced by expectations that interest rates would remain higher for a longer period.

Preliminary data showed that the annual inflation rate in Spain in October was unchanged from last month at 3.5 percent.

The health care sector rose 1.1 percent, supported by a 2.5 percent rise in Novo Nordisk shares.

Siemens Energy shares jumped nine percent as talks continued at the beginning of this week with Berlin regarding guarantees worth about 15 billion euros ($15.8 billion) related to projects.

Dassault System shares rose three percent after JP Morgan raised its recommendation for the French software company to “overweight” from “underweight” in investment portfolios.

HSBC shares rose 1.2 percent after announcing a new share buyback worth $3 billion and more than doubling profits in the third quarter.