Novo Nordisk in talks buy controlling stake in Biocorp
BKW falls to bottom of STOXX 600 on UBS double downgrade
Eurozone retail sales data for April due later on Tuesday

June 6 Reuters European shares were rangebound on Tuesday as worries of further interest rate hikes by major central banks in the face of slowing economic growth countered support from healthcare giant Novo Nordisk.

The panEuropean STOXX 600 index inched 0.1 higher to 460.42 points. On Monday the index dropped as data pointing to tepid U.S. business activity sparked profittaking following gains in the prior week.

Defensive healthcare stocks added 0.8.

Danish drug developer Novo Nordisk rose 3.5, as trading resumed following a holiday in Copenhagen on Monday. The company said it had started talks to buy a controlling stake in medical device designer Biocorp  The French company39;s shares surged 15.7.

Hawkish comments from European Central Bank ECB President Christine Lagarde and Bundesbank President Joachim Nagel on Monday cemented expectations for further rate hikes from the central bank in June.

Dutch central bank chief Klaas Knot said that underlying price pressures in the euro zone may prove more difficult to tame but monetary policy is showing signs of effectiveness and further rate hikes must be done step by step.

These comments come even as the U.S. money markets bet on the Federal Reserve skipping on raising rate this month.

We are potentially heading towards a more riskoff environment…