- December 20, 2024
- By: Admin1_blog
- EU Market, Indices
Chloe Taylor
European markets opened lower on Friday as investors monitored political turmoil in the U.S. and monetary policy decisions from various major economies.
European markets
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| .FTSE | FTSE 100 | 8084.77 | -20.55 | -0.25 |
| .GDAXI | DAX | 19969.86 | 0 | 0 |
| .FCHI | CAC 40 Index | 7268.67 | -25.7 | -0.35 |
| .FTMIB | FTSE MIB | 33787 | -613.99 | -1.78 |
| .IBEX | IBEX 35 Idx | 11364.9 | -75 | -0.66 |
The pan-European Stoxx 600 index was around 0.9% lower shortly after the opening bell, with every sector and all major bourses in negative territory.
The United States was plunged into fresh political uncertainty on Thursday evening, after the failure of a Trump-backed spending bill, whose passage would have prevented a government shutdown. Dozens of Republican lawmakers voted against the deal to fund the government for three months and suspend the U.S. debt ceiling for two years, meaning a partial government shutdown will commence on Friday night.
Meanwhile, U.S. president-elect Donald Trump issued a fresh trade threat to the EU, floating on social media the possibility that he would impose new tariffs on the bloc unless it purchased more oil and gas from the United States.
Elsewhere, China held its key interest rates steady Friday, in line with expectations. The move came in the same month that Beijing’s top officials vowed to ramp up policy easing measures.
The latest development from the People’s Bank of China arrived in the same week as monetary policy updates from the Federal Reserve and the Bank of England. On Wednesday, the Fed announced a 25-basis-points cut to its core interest rate, while the Bank of England held policy unchanged at its own Thursday meeting.
While the Bank of England’s decision was widely anticipated, a split in the vote and Governor Andrew Bailey’s comments about the economic impact of the newly elected Labour government’s budget rattled markets, sparking a dip in the value of the British pound and yields on Britain’s 10-year Gilts to tick higher.
Russian policymakers are set to update their monetary policy on Friday.
The U.K.’s retail sales for November, France’s November Producer Price Index, and the current state of consumer confidence in Italy will also be released on Friday.
— CNBC’s Christina Wilkie, Sonia Heng and Anniek Bao contributed to this European markets summary.
President-elect Trump renews EU tariff threat
U.S. President-elect Donald Trump took to his Truth Social social media platform Friday to issue a threat to the European Union.
The euro was slightly higher against the greenback Friday morning, trading 0.1% higher at $1.0376 by 7:04 a.m. London time.
— Chloe Taylor
Opening calls
Here are the opening calls for European stocks on Friday.
The FTSE 100 is slated to open 110 points lower at 8,088, according to data from IG, while Germany’s DAX is expected to lose around 400 points to 19,835 and the French CAC 40 is set to shed 140 points to 7,244.
— Chloe Taylor
CNBC Pro: Want to buy the dip in energy? Bernstein names a top pick with almost 50% upside
European utilities and clean energy had an underwhelming performance in 2024, but Bernstein sees bright spots within the sector to play in the year ahead.
“We have a bias towards companies loading up on the visible capex [capital expenditure] cycle in electricity networks,” the investment bank’s analysts wrote in a Dec. 9 note.
— Amala Balakrishner
Source : cnbc
