Investing.com – European stock markets closed higher on Tuesday, the last trading day of the year, amid weak holiday-driven volumes.
At 11:30 ET (16:30 GMT), the CAC 40 in France gained 0.9%, and in the UK it was up 0.6%, while it was closed in Germany.
Trading volume was limited early in the session, with exchanges in Italy and Switzerland joining Germany in closing on New Year’s Eve, while those in France, Spain and the UK closed earlier.
European failure
Major European indices struggled in the final quarter of the year, weighed down by political uncertainty, a slowing European economy and rising bond yields, with European averages underperforming their US rivals.
The benchmark is up nearly 24% on Wall Street in 2024, while the broad pan-European is up just 5.4%.
German stocks have outperformed the broader European markets this year with an almost 19% jump, the British FTSE 100 is on track for an almost 5% rise, while the 40 has fared worse, falling almost 3% since the beginning of the year.
Eurozone manufacturing PMIs are due
Tuesday’s list of economic data is largely empty, and focus will quickly turn, after Wednesday’s European holiday, to the release of manufacturing PMI data for the entire European region on Thursday.
December’s eurozone statement is expected to show the sector remains deeply in decline, suggesting more trouble lies ahead for Europe’s economies.
Lower interest rates earlier this month hinted at further cuts as economic growth stagnates in the region.
Crude Oil Gets Chinese Growth Boost
Crude oil prices rose on Tuesday, boosted by signs of rising Chinese manufacturing activity, but were on track to finish lower for a second year in a row.
By 11:30 a.m. ET, U.S. crude oil (WTI) futures were up 1.1% at $71.77 a barrel, while the contract was up 1% at $74.72 a barrel.
China expanded in December, but at a slower-than-expected pace, marking the third consecutive month of expansion as a raft of new stimulus measures provided support.
The outlook for oil demand hinges heavily on hopes that China, the world’s biggest oil importer, can revive its economy, especially as there are concerns about a potential oversupply due to an expected rise in output from non-OPEC countries.
Benchmark Brent is still on track for a loss of around 3% in 2024, while the WTI contract is largely unchanged for the year.
