European Stock Markets Close Higher in Low Holiday-Impacted Volumes
European stock markets closed higher on Tuesday, despite low holiday-impacted volumes. The UK’s FTSE 100 rose 0.4%, while the DAX gained over 0.1%. The CAC 40 was closed for Christmas.
The European Central Bank (ECB) is expected to cut interest rates further in 2025, as the economy stutters and inflation fears fade. ECB President Christine Lagarde and policy hawk Isabel Schnabel have cemented market bets on further gradual reductions in borrowing costs.
Inflation in the euro zone was 2.3% last month, and the ECB expects it to settle at its 2% target next year. There is little major corporate news, but Vistry Group revised its expected adjusted profit before tax for FY24 to approximately £250 million, down from its earlier guidance of £300 million. Kooth secured a $1.45 million pilot contract with the State of New Jersey to provide mental health support to 50,000 students.
Oil prices rose on Tuesday, with Brent futures gaining 1.4% to $73.3 per barrel, and West Texas Intermediate futures rising 1.6% to $70.4 per barrel.