European stock markets were mixed on Monday as trading commenced in a shortened week ahead of the Christmas holidays.
Activity remained muted, with markets across Europe set to close early on Christmas Eve and remain shut on Christmas Day.
The pan-European Stoxx 600 index hovered slightly above the flatline during early trading, with most sectors and major bourses in negative territory.
German stocks wobbly in early trade
German stocks edged lower amid cautious trade ahead of the holidays.
The benchmark DAX index fell by 54 points, or 0.3%, to 19,831, following a 0.4% decline in the previous session.
On the economic front, Germany’s import prices rose for the first time in three months in November, reversing a decline from October.
Data from Destatis revealed a 0.6% year-on-year increase in import prices, compared to a 0.8% drop the previous month. On a monthly basis, import prices rose by 0.9%, surpassing the expected 0.5% increase.
Export price inflation also gained momentum, climbing to 1.2% year-on-year in November from 0.6% in October. Monthly export price growth held steady at 0.3%.
CAC 40 extends losing streak
French stocks drifted lower on Monday, reflecting investor concerns about Europe’s unsettled political climate and potential US trade tariffs under the incoming Trump administration.
The benchmark CAC 40 index was down by 32 points, or 0.5%, at 7,242, extending losses from a 0.3% decline in the previous session.
The index looks set to extend its decline to the third straight session on Monday.
Notable movements included declines in shares of AXA and BNP Paribas, following news that BNP Paribas Cardif signed an agreement to acquire asset manager AXA Investment Managers.
UK stocks flat as economy stalls
UK stocks were flat to slightly lower as official data showed that the economy stalled in the third quarter.
According to the Office for National Statistics, real GDP growth was revised downward to 0% from the initial estimate of 0.1%.
This stagnation followed a 0.4% expansion in the second quarter, as industrial production declines offset moderate gains in construction.
Year-on-year, GDP rose by 0.9%, slightly below the previously estimated 1.0%.
The benchmark FTSE 100 index was up by 3.43 points, or 0.042%, to 8,087.90.
Asia peers end higher
Asian stocks followed Wall Street higher on Monday after the Federal Reserve’s preferred inflation gauge came in below expectations, fueling hopes for more rate cuts by the US Federal Reserve in 2025.
China’s Shanghai Composite index ended down half a percent at 3,351.26 after a choppy session.
Hong Kong’s Hang Seng index jumped 0.82% to 19,883.13 amid expectations that China will ramp up economic support and shift to a moderately loose monetary stance next year.
Japanese markets rose sharply, led by automakers and technology stocks.
The Nikkei average rose 1.19% to 39,161.34 while the broader Topix index settled 0.92% higher at 2,726.74.
Korean stocks rallied as foreign and institutional investors both turned net buyers after the release of softer-than-expected US PCE inflation data.
The Kospi climbed 1.57% to 2,442.01.
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