European stock markets saw significant gains on January 24, 2025, following US President Donald Trump's speech during his first virtual appearance at the World Economic Forum in Davos, Switzerland. Trump called for a reduction in global interest rates and urged OPEC to lower oil prices, alongside advocating for deregulation in banking.
The Euro Stoxx 600 index rose by 0.46% to €530.50, marking a record high after seven consecutive sessions of gains. Germany's DAX index increased by 0.74%, achieving its eighth straight session of growth. France's CAC 40 advanced by 0.7%, reaching its highest level since June 11, while the FTSE 100 climbed 0.23% to also close at a record high.
The European banking sector (SX7P) led the gains with a rise of 1.83%. Major financial stocks performed well, with HSBC shares up 0.77%, UBS increasing by 0.38%, UniCredit climbing 2.53%, and Banco Santander advancing 2.45%.
Trump's remarks encouraged US investment by promising lower taxes and fewer regulations. He specifically urged major US banks, including Bank of America and JPMorgan Chase, to cease blocking political accounts. He also criticized European regulators for their strict approach towards US tech firms and oil producers.
In the energy sector, European stocks faced losses as oil and gas prices fell, following Trump's request for OPEC to reduce prices. Shares of Shell, BP, and TotalEnergies dropped by 0.48%, 0.59%, and 0.43%, respectively.
Crude oil futures fell for the fourth consecutive day, with WTI futures down 1.09% to $74.62 per barrel and Brent futures down 0.9% to $78.29 per barrel, both reaching two-week lows. Trump attributed high oil prices to funding Russia's military actions in Ukraine and stated that reducing prices could help end the conflict.
In the technology sector, shares showed mixed performance. SAP's shares remained steady at an all-time high of €262, while ASML saw a decline of 4.4% due to concerns over potential export restrictions to China. Dutch Prime Minister Dick Schoof indicated that the Trump administration might impose strict controls on AI chip exports to China.
Trump signed an executive order regarding cryptocurrency and artificial intelligence, establishing a working group to advise on digital asset policies. Following this announcement, Bitcoin prices fell from over $107,000 to approximately $102,000, before slightly rebounding to $103,370.