Year-End Market Recap: Mixed Results in European Markets

European markets saw a decline on the last trading day of the year, with the Stoxx 600 index down by 0.7% by mid-afternoon London time. Most sectors faced losses, while oil and gas sectors experienced gains. The Stoxx 600 has had a moderate year-to-date increase of around 5.5%, contrasting the remarkable 25% rise in the U.S. S&P 500 index for 2024.

Trading activity in both European and U.S. markets slowed down ahead of the New Year holiday. In Asia, stock performances were mixed, with Japan reporting a slower contraction in factory activity.

The markets were impacted by the tragic crash of a Jeju Air plane, leading to a decline in Korean airline shares and a drop in Boeing’s New York-listed shares. Investigations are ongoing to determine the cause of the crash.

Ocado, a British online grocery retailer, saw its shares drop after reports of missing Christmas deliveries. Spain reported an increase in inflation rates, surpassing analyst expectations, prompting discussions on interest rate adjustments by the European Central Bank.

Italy passed its government budget for 2025 to reduce the fiscal deficit, while France aims for a deficit just above 5% in its upcoming budget bill.

Overall, European markets are ending the year with mixed results influenced by tragic events, retail challenges, inflation fluctuations, and fiscal policy developments.

Source: CNBC