European shares finished marginally higher on Monday, supported by defence stocks, while Novo Nordisk gained after data showed its weight-loss drug Wegovy delivers stronger heart-protective benefits than Eli Lilly's rival therapies.

The pan-European STOXX 600 closed up 0.17% at 551.07, with gains led by the aerospace and defence index, which surged 2.1% to hover near a record high.

Defence giants, Rolls-Royce Holdings, Rheinmetall and Hensoldt advanced between 2.8% and 4.5%.

Gains followed a Financial Times report that European Commission President Ursula von der Leyen said Europe was preparing "pretty precise plans" to send troops to Ukraine as part of post-conflict security guarantees.

Britain's BAE Systems was up 1.8%, as Norway said it had chosen Britain for the acquisition of new frigates, in a deal worth some 10 billion pounds ($13.51 billion).

Danish drugmaker Novo Nordisk, the fourth-largest healthcare company on the STOXX index, rose 1.8% after the company said Wegovy cut the risk of heart attack, stroke or death by 57% versus Eli Lilly's rival medicines Mounjaro and Zepbound in a real-world comparison.

The stock bolstered the healthcare index, rising 0.27%. Denmark's main stock index gained 1.1%, also aided by Novo's domestic peer Zealand Pharma that ended 3.5% higher.

Overall gains were limited by a jump in long-dated euro zone bond yields on persistent worries about government debt levels around the world.

Source : Reuters