European shares fall in final full session of 2024 as bond yields remain higher

Published 12/30/2024, 03:33 AM
Updated 12/30/2024, 12:15 PM
© Reuters. FILE PHOTO: The German stock exchange is decorated for the Christmas season as the German share price index DAX graph is pictured in Frankfurt, Germany, December 27, 2024. REUTERS/Staff/File photo

By Sruthi Shankar

(Reuters) -European stocks fell on Monday, in line with Wall Street, as still-high government bond yields prompted investors to pull out of equities at the end of a year that has been positive for some regional markets.

The pan-European STOXX 600 index closed 0.6% lower, with technology and health care (SXDP) leading broad-based declines.

Trading volumes were thin ahead of the New Year holiday on Wednesday. Stock markets in Germany, Italy and Switzerland are shut on Tuesday as well, while those in the UK and France have a half-day trading session.

The 10-year German bund yield traded near its highest since mid-November, tracking a rise in U.S. Treasury yields, as uncertainty around monetary policy next year and prospects of inflationary policies under a Trump presidency weighed on investor sentiment.

The STOXX 600 is still on course for a 5.9% annual rise, with German stocks leading regional gains and French shares lagging.

Still, the European benchmark lags the S&P 500's 25% surge this year as interest rate cuts from the Federal Reserve and a boom in AI trades boosted Wall Street's tech behemoths.

"The surging S&P 500 and Nasdaq underscore the market's tech-fuelled triumph, though last Friday's sell-off, triggered by climbing Treasury yields, was a sobering reminder of lingering rate concerns," said Matt Britzman, senior equity researcher at Hargreaves (LON:HRGV) Lansdown.

The German DAX dipped 0.4% on its final trading day of the year but looked on course for a 19% annual surge, making it the top performer this year among major European bourses.

On the flip side, France's CAC 40 was set for an annual drop of 2.5%, driven by concerns about the country's spiralling fiscal deficit and political turmoil.

Among sectors, food and beverages as well as automobiles are on track to be the worst performing sub-sectors across the continent this year, while banks are set to be the best faring.

Over on Wall Street, a slide in tech giants including Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) pushed the S&P 500 to a more than one-week low. [.N]

© Reuters. FILE PHOTO: The German stock exchange is decorated for the Christmas season as the German share price index DAX graph is pictured in Frankfurt, Germany, December 27, 2024. REUTERS/Staff/File photo

Siemens (ETR:SIEGn) Healthineers dipped 1.7% after Siemens AG (OTC:SIEGY)'s Chief Financial Officer Ralf Thomas told the Handelsblatt newspaper that the German technology group is reviewing its majority stake in its medical technology unit.

BayWa surged 17% after the Munich-based trader of farming supplies and produce said it had reached a restructuring agreement with its major shareholders and financiers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.