European stock markets opened lower on December 30, 2024, as the Stoxx Europe 600 Index fell by 0.4%. This decline comes as investors reacted to elevated government bond yields, prompting withdrawals from equities at the end of a generally positive year for the region.
The pan-European index experienced broad-based declines, with technology and industrial goods sectors leading the downturn. Trading volumes were notably thin ahead of the New Year holiday, with several European markets set to close early on December 31.
The yield on the 10-year German bund reached its highest level since mid-November, influenced by rising U.S. Treasury yields. Investor sentiment was affected by uncertainty surrounding monetary policy for the upcoming year and inflationary expectations under a potential Trump presidency.
Despite the current dip, the STOXX 600 is on track for a 5.9% annual increase, with German stocks showing the strongest gains, while French shares lagged behind. Siemens Healthineers saw a 0.6% decline after news that Siemens AG is reviewing its majority stake in the medical technology unit. In contrast, BayWa's shares surged 21% following a restructuring agreement with key shareholders and financiers.