European stock markets wrapped up 2024 with strong gains as attention shifted to 2025 and the potential impact of US president-elect Donald Trump’s policies on the global economy. The FTSE 100 in London saw a rise by 0.6 percent, while Paris’ CAC 40 climbed 0.9 percent on the final trading day, which was shortened for the holiday. For the full year, London saw nearly a six percent increase, driven by falling global inflation, which led to interest-rate cuts from central banks. This helped push global stock markets to new record […]
European Stocks End 2024 With Strong Gains Amid Global Uncertainty And Tech Boom
European stock markets wrapped up 2024 with strong gains as attention shifted to 2025 and the potential impact of US president-elect Donald Trump’s policies on the global economy.
The FTSE 100 in London saw a rise by 0.6 percent, while Paris’ CAC 40 climbed 0.9 percent on the final trading day, which was shortened for the holiday. For the full year, London saw nearly a six percent increase, driven by falling global inflation, which led to interest-rate cuts from central banks. This helped push global stock markets to new record highs, fueled by a tech boom, particularly in artificial intelligence.
However, Paris ended the year with a 2.2 percent decline. The index was hit by political instability in France and the slowdown of China’s economy, which had a significant impact on the luxury sector. On the other hand, Frankfurt’s stock market surged nearly 19 percent, despite Germany facing tough economic challenges in 2024.
The year ended with uncertainty, as traders reflected on the potential impact of Trump’s presidency on global monetary policies and economic conditions, according to Matt Britzman, senior equity analyst at Hargreaves Lansdown.
In Asia, stock markets mostly ended the year in the red. Worries about the outlook for 2025 and profit-taking caused Wall Street’s traditional “Santa Claus rally” to turn into a brief slump. The three major US indices fell about one percent on Monday, with the tech sector continuing its losses from Friday. Traders were locking in gains after a strong 2024, especially for the seven largest US tech firms, often called the “Magnificent Seven.”
Concerns about slow US interest rate cuts by the Federal Reserve and uncertainty surrounding Trump’s tariff policies contributed to a sour mood. In Asia, particularly in China, trade conflicts appeared manageable, but broader economic issues weighed heavily. China faced difficulties in domestic consumption and setbacks in its tech sector, said Stephen Innes at SPI Asset Management.
China’s manufacturing Purchasing Managers’ Index (PMI) showed 50.1 in December, indicating a third consecutive month of expansion. President Xi Jinping announced plans to implement “more proactive” macroeconomic policies in 2025, though economists warned that more direct fiscal stimulus was needed to boost domestic consumption. The yuan fell to its lowest level against the US dollar since October 2023.
In Japan, the Nikkei 225 index closed out the year with a nearly 20 percent gain. This surpassed its pre-1990s asset bubble high.
Overall, 2024 saw a strong year for European and global stock markets, thanks to a mix of central bank actions, tech growth, and some regional challenges. As investors look to 2025, uncertainties surrounding economic policies and global trade will continue to shape market sentiment.
