European markets fell slightly on Thursday, after an initially positive start to 2025 trading.
Pan-European Stokes 600 The index reversed earlier gains to trade 0.3% lower by 11:18 a.m. London time as regional stock exchanges reopened after the New Year holiday.
Bank shares led the losses, falling more than 2%, while car company shares also fell by 1.8%. Meanwhile, oil and gas stocks rose 1%, and utilities also rose 0.84%.
Spain shares PBVA and Santander Bank Banking shares were among the biggest losers in the selling of bank shares, falling more than 4%. Italy unicredit It traded down about 3%.
Major regional stock exchanges also fell into the red by mid-morning, including France's Stock Exchange CAC 40 Loss of 1.2% President Emmanuel Macron The confession appeared on Tuesday His decision to hold early parliamentary elections last year caused problems for the country.
“We are also facing political instability, and it is not just limited to France, but we are also seeing it among our German friends who have just dissolved their parliament. But it legitimately worries us,” Macron said in his New Year's address. He added, “I must admit tonight that the dissolution of (Parliament) has currently brought more divisions to the Assembly than solutions to the French.”
And elsewhere, Germany Dax It fell 0.3% on Thursday and in the UK FTSE 100 index It hovered around the flat line.
This comes at a time when manufacturing activity declined in December in Germany and France, a sign of the continued plight of the two largest economies in the euro zone. The HCOB Manufacturing PMI came in at 42.5 last month in Germany, down from 43.0 in November. In France, production volumes fell to 41.9, the largest decline since May 2020.
Manufacturing activity also slowed in Italy in December, while Spain recorded another month of expansion, with the southern European economy continuing to gain strength, the data showed.
In currency markets, both the British pound and the euro fell against the strong dollar. The British pound recorded its lowest level against the dollar since April 2024, and was last down 0.61% at $1.2441 by 11:43 AM 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 unusually strong in the final month of the year, data from UK bank Nationwide showed on Thursday. Home prices rose 4.7% over the year, putting them within striking distance of the all-time highs recorded in the summer of 2022.
Asian stocks Stocks traded mixed overnight, with Chinese shares leading losses as several major markets resumed trading after the New Year holiday.
US stock futures It was slightly higher going into 2025. Traders are hoping the market can regain the momentum that propelled it to record two consecutive years of annual gains above 20%.
— CNBC's Christina Scheider-Burke and Sophie Kederlein contributed to this market report
