European shares close higher on gains in healthcare and leisure sectors

European shares rose on Friday after pharmaceuticals rebounded from a decline seen in the previous session, while Flutter led a rally in the travel and leisure sector after an upbeat earnings forecast.

Shares in GSK, Sanofi and Haleon rose between 0.8% and 3.6% after the drugmakers said nothing material had changed regarding a US litigation focused on the heartburn drug Zantac.

Companies have fallen sharply this week on concerns over potential carcinogenic impurities, which led to the drug’s withdrawal from markets.

The European healthcare sector gained 0.2%, while the pan-European STOXX 600 index closed up 0.16% at 440.87 points.

But any rallies in the STOXX 600 are unlikely to last, said Sebastian Raedler and Thomas Pearce, investment strategists at Bank of America. “The main prerequisite for a sustained rally is a easing of the macro cycle and a renewed acceleration in growth momentum, but obstacles to growth remain considerable.”

Meanwhile, travel and leisure stocks jumped 3.9% to more than two-month highs, leading sector gains.

Flutter soared 14.4% to the top of the travel index as it saw no sign of tight customers betting less, and provided another positive update on its fast-growing US business.

• In London, the Financial Times index advanced 0.47%, to 7,500.89 points;
• In Frankfurt, the DAX index rose 0.74% to 13,795.85 points;
• In Paris, the CAC-40 index gained 0.14% to 6,553.86 points;
• In Milan, the Ftse/Mib index appreciated by 0.49%, at 22,970.73 points;
• In Madrid, the Ibex-35 index registered an increase of 0.24%, to 8,400.40 points;
• In Lisbon, the PSI20 index depreciated by 1.15%, to 6,167.77 points.