European markets fell slightly on Thursday, after an initially positive start to trading for 2025.
The pan-European Stoxx 600 The index reversed earlier gains to trade 0.3% lower at 11:18 a.m. London time as regional stock markets reopened after the New Year holidays.
Banking stocks led the losses, losing more than 2%, while auto stocks also fell 1.8%. Oil and gas stocks, meanwhile, rose 1%, with utilities also up 0.84%.
Actions of Spain BBVA And Santander Bank were among the biggest losers in the sell-off in bank stocks, falling more than 4%. Italy Unicredit was trading down about 3%.
The main regional stock markets also fell into the red by mid-morning, the French stock market CAC40 losing 1.2%. President Emmanuel Macron appeared to admit on Tuesday that his decision to hold early parliamentary elections last year caused problems for the country.
“We are also faced with political instability, it is not specific to France, we also see it among our German friends who have just dissolved their Assembly. But this legitimately worries us,” Macron declared in his new speech. year. “I must admit this evening that the dissolution [of parliament] has brought, for the moment, more divisions to the Assembly than solutions for the French,” he added.
Elsewhere, Germany DAX fell 0.3% on Thursday and that of the United Kingdom FTSE100 revolved around the flat line.
It comes as manufacturing activity fell in December in Germany and France, a sign of continued woes for the eurozone’s two largest economies. The HCOB manufacturing purchasing managers’ index stood at 42.5 last month in Germany, compared to 43.0 in November. Meanwhile, in France, production volumes fell to 41.9, the biggest drop since May 2020.
Manufacturing activity also slowed in Italy in December, data showed, while Spain recorded another month of expansion as southern Europe’s economy continues to gain strength.
On the foreign exchange markets, the pound sterling and the euro plunged in the face of the strengthening of the dollar. Sterling hit its lowest level against the greenback since April 2024 and was down 0.61% at $1.2441 as of 11:43 a.m. London time. The euro fell 0.31% to $1.0323, its lowest level since November 2022.
Sterling
UK house prices rose 0.7% month-on-month in December as activity remained exceptionally strong in the final month of the year, according to data released by UK lender Nationwide on Thursday . House prices increased by 4.7% over the year, bringing them closer to the historic highs recorded in the summer of 2022.
Asian stocks Trading was mixed overnight, with Chinese stocks leading losses as several major markets resumed trading after the New Year holiday.
US Stock Futures were slightly higher as trading began for 2025. Traders are hoping the market can regain the momentum that propelled it to post two consecutive years of annual gains above 20%.
—Christina Cheddar Berk and Sophie Kiderlin of CNBC contributed to this market report
