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European stocks exhibited a mixed performance on Monday, reflecting the cautious sentiment on the final full trading day of the year.
- DAX (Germany): +0.1%
- CAC 40 (France): +0.1%
- FTSE 100 (UK): -0.2%
Muted Trading Activity
With many markets preparing for early closures on Tuesday for the New Year holiday, trading volumes were subdued.
The pan-European STOXX 600 is on track to close 2024 with a 5.5% gain:
- The DAX leads with a 19% rise, reflecting Germany’s robust economic performance.
- The FTSE 100 gained 5%, buoyed by resilient commodity and energy stocks.
- The CAC 40 underperformed, shedding 2.6% over the year.
Key Market Drivers
Spanish Inflation Accelerates
Spain’s annual EU-harmonized inflation rate climbed to 2.8% in December from 2.4% in November, adding pressure to the European Central Bank’s (ECB) policy outlook.
- Despite a series of interest rate cuts earlier this month, ECB Governing Council member Robert Holzmann hinted that the next cut could be delayed due to the inflationary uptick.
- Eurozone annual inflation rose to 2.2% in November, surpassing the ECB’s 2% target.
Corporate Developments: Siemens Healthineers Falls
Shares of Siemens Healthineers (ETR: SHLG) dropped 1.5% after Siemens AG announced a review of its majority stake in the medical technology unit. This move signals potential restructuring or divestment as part of broader corporate strategy adjustments.
Energy Markets: Crude Prices Edge Up
Oil prices nudged higher on Monday, supported by thin trading conditions.
- WTI crude: +0.1% to $70.66/barrel
- Brent crude: +0.1% to $73.83/barrel
Both benchmarks remain on course for annual losses:
- WTI: Down 1.5%
- Brent: Down 4%
Concerns over slowing Chinese demand, the world’s largest oil importer, have weighed heavily on crude prices throughout the year.
Investors are also anticipating the Federal Reserve’s next policy decisions, which could influence broader market sentiment as 2025 approaches.
