European stocks opened the first trading session of 2025 higher on Thursday, led by a strong performance from the energy sector, as global investors analyzed new economic data from the United States.
The pan-European STOXX 600 index closed 0.60% higher at 510.67 points, reversing modest losses recorded at the start of the session, characterized by low liquidity, with investors still returning from the New Year holidays.
The oil and gas sector jumped 2.3% while crude oil prices rose 2% following Chinese President Xi Jinping’s pledge to boost growth. China is the largest importer of crude oil in the world. [O/R]
The utilities and defense sectors gained more than 1.5% each.
Meanwhile, the automotive and luxury goods sectors led sector declines, with losses exceeding 0.4%.
The benchmark STOXX 600 index suffered its worst quarterly decline in two years from October to December due to uncertainty over interest rates and the Trump administration’s policies, which several market participants fear could boost inflation.
However, the index posted a gain of about 6% in 2024, which was overall a good year for stocks. The US market, in particular, has reached all-time highs thanks to optimism about the adoption of artificial intelligence and interest rate cuts by the Federal Reserve.
The STOXX 600 also set a record last year but lagged the S&P 500’s 23.3% rise as a slowing European economy and political turmoil in Germany and France weighed on market sentiment.
“For now, the focus is on what appears to be the enduring resilience of the American economy,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“There are hopes that companies will continue to shake off the effect of high interest rates, while benefiting from tax cuts and deregulatory policies expected under a new Trump presidency.”
IN LONDON, the Financial Times index advanced by 1.07%, to 8,260.09 points.
IN FRANKFURT the DAX index rose by 0.58%, to 20,024.66 points.
IN PARIS, the CAC-40 index gained 0.18%, to 7,393.76 points.
IN MILAN the Ftse/Mib index grew by 0.55%, to 34,374.77 points.
In MADRID, the Ibex-35 index recorded an increase of 0.71%, to 11,676.90 points.
In LISBON the PSI20 index appreciated by 0.55%, to 6,412.28 points.
Source: Terra
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