European stocks opened higher on December 24, with the pan-European STOXX 600 index up 0.2% as of 0855 GMT. Travel, leisure, and energy stocks led the gains in light trading volumes ahead of the Christmas break, with many markets closed or operating on reduced hours.
Amsterdam, Brussels, and Paris are conducting half-day trading sessions, while Frankfurt and Milan are fully closed. With the New Year approaching, investors are closely monitoring developments related to U.S. President-elect Donald Trump's upcoming inauguration on January 20, particularly his proposed import tariffs that could impact economies such as China and Mexico.
Market analysts have expressed concerns about potential inflationary effects from Trump's policies, which are already influencing the Federal Reserve's monetary policy outlook. The European Central Bank has also noted possible trade tensions with the U.S.
Despite the STOXX 600 reaching record highs this year, it has only gained approximately 5% in 2024, with momentum hindered by geopolitical tensions, weak domestic economic conditions, and lackluster Chinese spending.
On this day, the travel and leisure sector rebounded by 0.5% after a 2% decline the previous day, while energy stocks also rose by 0.5%, following an increase in oil prices. In individual stock movements, British homebuilder Vistry fell 18% after issuing a profit warning for the third time this fiscal year due to delays in year-end transactions.
In France, a new government was unveiled, with Prime Minister Francois Bayrou aiming to pass the 2025 budget and mitigate the ongoing crisis. The CAC 40 index was up 0.4% at the time of reporting.