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European stock markets were slightly down on Friday afternoon as investors monitored falling interest rates.
Swiss stocks increased by 0.2% during their first trading day of 2025. In 2024, U.S. stock markets performed well, boosted by positive feelings about artificial intelligence and interest rate cuts from the Federal Reserve. Traders are looking forward to data on U.S. manufacturing activity and speeches from officials of the Fed and the European Central Bank later today.
European markets were slightly down on Friday due to concerns about China's struggling economy affecting important sectors. The main Stoxx 600 index fell by 0.3%. Car and luxury goods companies were particularly impacted, as China is an important market for them, and disappointing manufacturing data from the country is overshadowing Beijing's efforts to boost growth.
European stock markets faced challenges in finding a clear direction as new information from the British Retail Consortium revealed a drop in the number of shoppers on UK high streets.
The pan-European STOXX 600 index fell by 0.1% at 0815 GMT, but it is expected to rise by 0.7% for the week, with trading activity being low as traders returned from their New Year breaks. Swiss stocks increased by 0.5% in their first trading session of 2025, while the German DAX decreased by 0.2% and France's CAC 40 dropped by 0.5%. Sectors linked to China, like mining and automotive, faced challenges despite a Beijing official announcing plans to significantly boost funding through ultra-long treasury bonds in 2025 to encourage business investment and support consumers.
European stock markets were slightly down on Thursday afternoon as investors considered the upcoming decisions from the Trump Administration.
Mining companies like Glencore and Anglo American were at the forefront in the beginning.
French stocks have performed poorly compared to other major markets, finishing 2024 with a decline while many European and US indices saw significant increases. The CAC 40 index fell by 2.2%, in contrast to Germany's DAX, which rose by 19%, Spain's IBEX by 15%, and Italy's FTSE MIB by 13%. This downturn follows a year of political instability in France.
European stocks are not finishing 2024 with a strong performance, but they are still managing to make some small gains in the last trading day of the year. The main Stoxx 600 index in Europe rose by 0.3%. It is expected to end the year with an increase of just under 6%, which is significantly lower than the U.S. market.
On Monday, stocks in Europe dropped after Spain's monthly inflation data exceeded expectations, making it more likely that the European Central Bank will be careful about lowering interest rates in 2025. While Frankfurt's Dax and London's FTSE 100 saw slight declines, Paris's CAC 40 managed to rise by 0.1%. The inflation report revealed that Spanish consumer prices increased by 2.8% in November compared to the previous year, surpassing the 2.6% forecast from economists surveyed by The Wall Street Journal.
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