The main European stock markets ended higher this last day of 2024, although they completed their worst quarter since 2022. In the accumulated annual period, almost all of them registered gains, with the exception of the French benchmark, which closed in “red” because it was involved in a climate of profound political instability.
The reasons for the deterioration between September and December were linked to the uncertainty surrounding interest rates and policies announced by US President-elect Donald Trumphalted a rally that had taken several markets to record highs this year. The pan-European STOXX 600 index recorded a quarterly decline of around 3%, the largest since July 2022.
In 2024 the benchmark has only risen 5.9%while the slowdown in the European and Chinese economies, the problems of automakers and the political turmoil in France have weighed on market sentiment.
The index that had the best performance in the year was the German DAX, with an advance of 18.9%. It was followed by the IBEX 35 of Madrid (+14.8%) and the FTSE of Milan (+12.6%).
The increase in the London FTSE was much lower (+5.7%), while the CAC 40 in Paris fell 2.2%. It is worth remembering that President Emmanuel Macron recently appointed the fourth government of the yearwith the aim of calming the pressures it had been receiving from both the left and the right, in a context of great fragmentation in the legislative power and many difficulties in approving the 2025 budget.
This Tuesday, December 31, the dynamics were opposite to that of the year since it was French stocks that increased the most (+0.9%) and German stocks were the only ones that ended with a negative variation (-0.4%), a symptom of rearrangement of values.
In the case of the Madrid selective, the increase was 0.6%. IAG (Iberia) has been the main protagonist of the stock market in 2024, with a spectacular revaluation starting in October that has led it to double its price in the accumulated year, returning to levels that it had not touched since before the Covid pandemic broke out. 19. Behind the airline holding company, the banks, led by Banco Sabadell, have shone brightly.
On the opposite side, among the losses stood out Solariawith a cumulative drop in the year of more than 58%. The pressure on the renewable companies sector, together with financial results that disappointed the market, largely explain this fall. Within the sector, Acciona and Acicona Energía have also closed the year with a clear negative balance.
Other bags in the world
On Wall Street futures point to a positive opening following the corrective of recent days, which has dashed investors’ hopes of a Santa Claus rally, which occurs when the market rises during each of the last five trading days of a calendar year and the first two days of January negotiation.
Of course, the correction of recent days does not prevent a historical year: The S&P 500 is up more than 23.8%, putting it solidly on track for its second consecutive gain above 20%. The DOW JONES Industrial Average has added nearly 13%, while the Nasdaq Composite has outperformed with a gain of 29.8%.
During the Asian session, most stock markets fell in a cautious end to the year, as investors reduce bets on sharp US rate cuts in 2025 and prepare for the incoming Trump administration, with the dollar holding firm against most other currencies. It must be taken into account that today The Japanese stock market has remained closed for holidaysand in fact he will not return to activity until next Monday.
Source: Ambito
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