The Euro Area inflation rebounded in December, after energy prices halted steep decline and food prices stabilized. The UK's home price index rose at a slower pace amid affordability issues. Italy's jobless rate dropped to a record low in December. 

European markets rebounded from Friday's losses after business activities improved in December. The business activities index advanced in December at the fastest pace since March 2023, and the downturn in Italy moderated to a slight contraction. Germany's 10-year bond yield rose and approached a six-month level.

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.

Stock market indexes in Europe extended weekly losses after political chaos in the U.S. added to the region's political uncertainties.

Stock market indexes in Europe dropped more than 1% following losses on Wall Street after Fed's hawkish outlook dented investor enthusiasm.



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 traded around the flatline as investors looked forward to rate decisions from the European Central Bank later this week.