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Orsted Shares Fall on Discounted Capital Raise as European Stocks Edge Higher

Orsted Shares Fall on Discounted Capital Raise as European Stocks Edge Higher
Image Source: By NYSE

European markets started the week on a positive note on Monday, even as shares in Danish energy group Orsted slipped following news of a heavily discounted share sale.

The Stoxx Europe 600 was up 0.6% by early afternoon in London. Germany’s DAX rose 0.5%, France’s CAC 40 gained 1.3%, while the UK’s FTSE 100 was flat.

Orsted Launches Fundraising

Orsted fell more than 3% after the wind energy developer announced plans to raise 60 billion Danish kroner ($9.4bn) by issuing new shares. The rights issue will be priced at 66.60 kroner per share, a steep 67% discount to Friday’s closing price of 200 kroner.

The company said the move was needed to stabilise its balance sheet and fund its offshore wind projects, which have been hit by rising costs and supply chain problems. The sharp discount underlines investor concerns about the sector’s profitability at a time of global competition and tight financing conditions.

Novo Nordisk Lifts Copenhagen

In contrast, Danish drugmaker Novo Nordisk gained 3.1% after the European Medicines Agency approved wider use of its diabetes drug Rybelsus. It can now also be prescribed to reduce cardiovascular risk.

The approval strengthens Novo Nordisk’s already dominant position in the diabetes and obesity treatment market, where demand for its Wegovy weight-loss drug has driven a surge in profits and made it Europe’s most valuable listed company.

UK Politics and Economics in Focus

The UK faces a busy week. President Donald Trump is due to arrive on Tuesday evening for a state visit. He will stay at Windsor Castle with King Charles III before holding talks with Prime Minister Keir Starmer on Thursday.

On Wednesday, official figures will show the latest UK inflation rate, followed a day later by the Bank of England’s policy meeting. Economists do not expect interest rates to be cut this week, but investors will be watching closely for guidance on the timing of future moves.

US and Asia Updates

In the United States, stock futures were steady after the Nasdaq Composite hit a record high on Friday. The focus is on the Federal Reserve, which meets this week and is widely expected to cut rates by a quarter point after signs of cooling inflation and a softer jobs market.

Asian markets traded mixed on Monday as U.S. and Chinese officials held talks in Madrid on trade and security issues. The meeting covered tariffs and the deadline for TikTok’s forced U.S. divestment, though no major breakthroughs were announced.

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