Monday saw a mixed performance in European stock markets, wrapping up the last full trading day of an overall favorable 2024 for these markets. Germany’s stock market grew by 0.1%, France’s by the same percentage, while the UK experienced a 0.2% decrease.
Mild European Market Activity
The trading landscape was calm in Europe on Monday. As the New Year holiday approaches, markets are gearing up to slow down, with many European indices expected to shut early on Tuesday.
The pan-European index is projected to close the year with an approximately 5.5% increase, with the German DAX surging over 19%, and the FTSE 100 growing by 5%. However, CAC 40 in France underperformed, recording a 2.6% decline.
Inflation in Spain Goes Up
Monday’s early data revealed that Spain’s annual EU-harmonized inflation rate increased to 2.8% in December, a rise from November’s 2.4%.
The European Central Bank lowered interest rates earlier this month and hinted at future reductions as the region’s economic growth plateaus. But the next interest rate cut might delay following a recent inflation surge, as stated by ECB Governing Council member Robert Holzmann on Saturday. He stated that immediate interest rate hikes are not anticipated, but the next cut might take longer.
Inflation accelerated in November to 2.2% from 2.0% the previous month, surpassing the ECB’s 2% target rate.
Share Price of Siemens Healthineers Drops
In the European business world, Siemens Healthineers saw a 1.5% dip in stock after Siemens’ CFO, Ralf Thomas, announced to Handelsblatt newspaper that the German tech group is reassessing its majority share in its medical tech division.
Crude Prices Fluctuate Prior to Federal Meet
Crude prices experienced a slight increase on Monday amidst thin holiday-affected trade kicking off the year’s final week.
By 06:45 ET, US crude futures (WTI) rose by 0.1% to $70.66 a barrel, with the Brent contract also increasing by 0.1% to $73.83 a barrel.
Both benchmarks are set for substantial losses in 2024. WTI contract is down by around 1.5% and Brent by over 4%, primarily due to concerns over slowing demand in China, the world’s largest oil importer.
