European markets fell slightly on Thursday after a strong start to 2025.
Pan-European Stoke 600 The index reversed earlier gains and fell 0.3% at 11:18 a.m. London time as regional exchanges reopened after the New Year’s Day holiday.
Banking stocks led the decline, falling more than 2%, while automobile stocks also fell 1.8%. Meanwhile, oil and gas stocks rose 1%, while utilities also gained 0.84%.
spanish stocks BBVA and Santander Bank stocks fell the most, falling more than 4%. Italian UniCredit Bank The trading price fell about 3%.
As of mid-morning, major regional stock markets were also in the red, with the French stock market CAC 40 down 1.2%. President Macron appeared to acknowledge on Tuesday that his decision to call early parliamentary elections last year had caused problems for the country.
Macron said in his New Year’s address: “We are also facing political instability, which is not limited to France, we also see it among our German friends who have just dissolved parliament. But it does worry us,” he added : “I must admit tonight that the dissolution (of parliament) currently creates more divisions in Parliament than French solutions.”
Elsewhere, Germany German DAX Index Down 0.3% on Thursday, UK FTSE 100 Hovering around the flat line.
Manufacturing activity eased in December in Germany and France, a sign of continued troubles in the euro zone’s two largest economies. Germany’s HCOB manufacturing purchasing managers’ index last month was 42.5, down from 43.0 in November. Meanwhile, French production fell to 41.9, the largest drop since May 2020.
Data showed that Italy’s manufacturing activity also slowed in December, while Spain’s manufacturing activity expanded for another month as southern Europe’s economy continued to grow.
In currency markets, the pound and euro both tumbled on strength against the dollar. Sterling hit its lowest level since April 2024, falling 0.61% to $1.2441 as of 11:43 a.m. London time. The euro fell 0.31% to $1.0323, its lowest level since November 2022.
GBP
Data released by British bank Nationwide on Thursday showed that UK house prices rose 0.7% quarter-on-quarter in December due to unusually strong economic activity in the last month of this year. Home prices rose 4.7% for the year, just shy of the all-time high set in the summer of 2022.
Asian stocks were mixed overnight, with Chinese shares leading the decline as several major markets resumed trading after the New Year holiday.
U.S. stock futures edged higher as 2025 trading begins.
—CNBC’s Christina Cheddar Berk and Sophie Kiderlin contributed to this market report
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