European markets struggled to advance in 2024 amid rising political turmoil in Germany and France, a weakening economic backdrop, and looming trade tensions with the U.S. and China, two key trading partners.
France's public debt continues to rise unabated as infighting among political parties prevents the nation from setting budgetary goals and reaching targets set by the European Union.
European markets struggled to advance in light trading as holiday fever dominated market sentiment. Investors held out for additional interest rate cuts.
The overall and core consumer price inflation accelerated in the U.K., supporting the case for the central bank to hold rates steady. The euro retained its downward bias amid ongoing political turmoil in France and Germany.
Germany's business climate index indicated a weakening outlook in the months ahead. The Eurozone trade surplus deteriorated in October but soared in the ten months in the year.
Despite the political turmoil and no hope of any meaningful improvement in France's finances in the imminent future, S&P Global and Fitch fail to adjust France's debt rating.
Stock market indexes in Europe trimmed weekly gains, and investors reviewed the latest economic updates. German trade surplus continues to shrink, and eurozone industrial production extended multi-month weakness.
The Swiss National Bank lowered its rate at the steepest pace in ten years amid a weak global economic backdrop. The European Central Bank is expected to signal additional rate cuts over the next two quarters.
The European Central Bank is widely expected to announce a rate cut by at least 25 basis points and signal its readiness for additional rate cuts if the economy warrants.
European markets traded sideways as investors awaited rate decisions from the European Central Bank on Thursday. Germany's consumer price inflation rebounded in November.
European markets extended gains for the seventh session in a row amid rising political instability in France. For the week, the benchmark indexes in Frankfurt and Paris rose nearly 4%.
European markets continue to overlook growing political instability in the two key economies of the currency union and rising fiscal stress. France is expected to go without a government for weeks, if not months, as Germany heads for a national election in three months.
European markets continue to overlook building fiscal pressures and political uncertainty in France and Germany, the two largest economies in the eurozone.
