European stocks closed slightly higher, supported by defense company shares, while Novo Nordisk gained after data showed its weight-loss drug Wegovy provides stronger heart protection benefits compared to rival Eli Lilly treatments.

The European Stoxx 600 index rose 0.17%, Germany’s DAX increased 0.57%, the Financial Times index climbed 0.10%, and France’s CAC edged up 0.05%. The aerospace and defense sector led gains, rising 2.1% near its all-time high.

Shares of major defense companies Rolls-Royce Holdings, Rheinmetall, and Hensoldt increased between 2.8% and 4.5%.

The gains followed a Financial Times report quoting European Commission President Ursula von der Leyen stating that Europe is preparing “very detailed plans” to send troops to Ukraine as part of security guarantees after the current conflict ends.

British defense company BAE Systems shares rose 1.8% after Norway chose the UK to purchase new frigates in a deal worth about £10 billion ($13.51 billion). Shares of Danish pharmaceutical company Novo Nordisk, the fourth largest healthcare firm on the Stoxx index, rose 1.8% after announcing that Wegovy reduces the risk of heart attacks, strokes, or death by 57% compared to Eli Lilly’s competing drugs Mounjaro and Zepbound.

The stock boosted the healthcare index, which rose 0.27%. Denmark’s main index gained 1.1%, also supported by Zealand Pharma, a local competitor to Novo Nordisk, whose shares rose 3.5%.

Overall gains were limited due to rising long-term bond yields in the eurozone amid ongoing concerns about global government debt levels. The 30-year German bond yield rose to its highest level in 14 years at 3.381% before retreating to 3.36%.

In Tokyo, the Nikkei index fell to a three-week low as chip sector shares declined, following tech stock sell-offs on Wall Street on Friday. The Nikkei dropped 1.24% to close at 42,188.79 points, after earlier plunging more than 2% to its lowest level since August 8.

Yonosuke Ikeda, head of macroeconomic research at Nomura, said: “It seems to me this is an overreaction to Friday’s New York market performance, which was essentially a portfolio rebalancing at month-end by selling all stocks that outperformed in August,” especially large tech names.