European shares gain on pharma boost; Fed policy decision on tap

(Reuters) - European shares edged higher on Wednesday, boosted by gains in Novo Nordisk and other healthcare stocks, with all eyes on the much-anticipated policy decision by the U.S. Federal Reserve later in the day.

The pan-European STOXX 600 was up 0.3% at 0814 GMT, coming off a 6.7% jump last month - its biggest gain in any January since 2015 - on hopes of better-than-expected corporate earnings and signs of economic resilience.

Danish drug maker Novo Nordisk rose 2.2%, and led the gains among healthcare stocks, on strong 2023 sales growth expectations.

Sweden's Husqvarna jumped 5.5% to the top of the STOXX 600 after the garden equipment and tools maker's operating loss shrank on an annual basis, helped by an organic sales growth of 8%.

Among other stocks, BMW gained 0.9% after the German automaker raised suggested retail prices for some models sold in China due to higher raw material and logistics costs globally.

The Fed will announce its rate decision at 1900 GMT, with Chair Jerome Powell's news conference half an hour later.

(Reporting by Ankika Biswas in Bengaluru; Editing by Savio D'Souza)