European stock markets closed mostly lower this Monday (30) with business dealings with very restricted liquidity towards the end of the year. The day had statements from directors of the European Central Bank (ECB) and the prospects for the authority’s stance in 2025 in focus.
Next Tuesday (31) some European stock markets will close earlier than normal, while others, such as Frankfurt and Milan, will have no operations.
The pan-European Stoxx 600 index closed down 0.48%, at 504.73 points.
Over the weekend, ECB leader Robert Holzmann said in an interview that the institution may take longer to cut interest rates again, given a recent acceleration in inflation in the euro zone.
This Monday, it was published that Spanish inflation accelerated more than expected in December, remaining above 2% for the second month in a row while rising 2.8% compared to the previous year, accelerating in relation to the 2.4% increase in November.
Director Yannis Stournaras stated that the stability of inflation in the euro zone close to the 2% target – expected to be reached in early 2025 – allows room for greater European monetary easing, if conditions allow.
Another leader, Klaas Knot, said there is a serious chance of a trade war breaking out. According to Knot, if the future US government, under Donald Trump, imposes new tariffs, China could start selling its products at cheaper prices to Europe. In a situation like this, China would end up “exporting” its deflation to the European continent, said the leader.
In Frankfurt, the DAX fell 0.38%, to 19,909.14 points, ending the year with an increase of 18.85%, representing the biggest gain among the main European exchanges. Adding to the rise in 2023, the index has accumulated an appreciation of 43% in two years, which represents the best biennium for the DAX in more than a decade.
The highlight is the advance of SAP, which, driven by the performance of technology companies throughout 2024, was responsible for around a third of the index’s gains in the year, according to the newspaper The Economist. In Milan, the FTSE MIB rose 0.07%, to 34,186.18 points, ending the year with an increase of 12.63%.
In London, the FTSE 100 fell 0.35%, to 8,121.01 points. In Paris, the CAC 40 fell 0.57%, to 7,313.56 points. In Madrid, the Ibex35 rose 0.08%, to 11,540.90 points. In Lisbon, the PSI 20 dropped 0.10%, to 6,367.38 points.
