Major European Markets Close Slightly Higher

(RTTNews) - European stocks saw some profit taking in late afternoon trades on Friday, but the major markets in the region still managed to close slightly up.

Investors assessed recent economic data, earnings news, and monetary policy announcements of the Federal Reserve and the European Central Bank, and shrugged off concerns about the potential impact of Chinese startup DeepSeek's low-cost AI model on major tech firm's earnings.

The pan European Stoxx 600 ended 0.13% up. The U.K.'s FTSE 100 climbed 0.31% and France's CAC 40 ended higher by 0.11%, while Germany's DAX edged up 0.02%. Switzerland's SMI closed lower by 0.06%. The major European markets posted strong monthly gains.

Among other markets in Europe, Austria, Denmark, Iceland, Netherlands and Sweden ended higher.

Finland, Ireland, Norway, Poland, Portugal, Russia, Spain and Turkiye closed weak. Belgium and Greece ended flat.

In the UK market, Smiths Group shares soared nearly 11%. The stocks climbed following the company unveiling plans to divest divisions and expand its share buyback program.

Land Securities, Mondi, St. James's Place, JD Sports Fashion, Centrica, Next, ICG, Rolls-Royce Holdings, SSE, The Sage Group and BAE Systems gained 1.3 to 3%.

Fresnillo ended down 2.3%. Prudential, Sainsbury (J), Associated British Foods, Marks & Spencer, Whitbread, BT Group, Spirax Group, Croda International, Antofagasta and Smith (DS) lost 1 to 1.6%.

In the German market, Siemens Energy gained about 2.3%. Infineon, Zalando and Commerzbank climbed 1.5 to 2%. Rheinmetall, Vonovia, MTU Aero Engines, RWE, Siemens and Volkwagen posted modest gains.

Merck ended down 3%. Adidas, Hannover Rueck, Puma, BASF and BMW lost 1.4 to 2%. Bayer, Beiersdorf, Brenntag and Deutsche Post also closed weak.

In the French market, STMicroelectronics gained about 2.5%. Schneider Electric climbed 2%. Vivendi, Engie, Unibail Rodamco, Thales, Legrand, Hermes International and Airbus Group also closed higher.

LVMH, L'Oreal and Carrefour lost 1.7 to 2%. Teleperformance, Kering, Danone and Stellantis closed down 0.4 to 1%.

Data from Destatis said retail sales in Germany dropped by 1.6% month-over-month in December 2024, following downwardly revised 0.1% fall in the previous month. On annual basis, retail sales rose 1.8% in December, but fell short of an expected increase of 2.5%. Retail sales rose by a downwardly revise 2.9% annually in November.

The unemployment rate rose to 3.2% in December 2024, compared with a 2.9% rise in December 2023. Compared with the previous month, the adjusted unemployment rate remained at 3.4% in December 2024.

German consumer prices were 2.3% higher in January than the first month of 2024, down from a 2.6% rise in December, Destatis said. Inflation was expected to rise 2.7%.

A report from the statistical office INSEE said France's annual inflation rate edged up to 1.4% in January 2025 from 1.3% in December, according to preliminary estimates. This marks the fourth consecutive month of increase in the nation's inflation. Inflation was expected to come in at 1.5% in January.

The CPI decreased 0.1% in January 2025, after rising 0.2% in December.

Meanwhile, producer prices in France rose 1% month-over-month in December 2024, slowing from an upwardly revised 3.7% increase in the previous period. On a yearly basis, producer prices fell 3.8% in December, following a 4.7% decline in the prior month.

Data published by the Nationwide Building Society showed house prices in the U.K. gained only 0.1% in January, following a 0.7% rise in December. Economists had expected house prices to rise by 0.3% in January.

On yearly basis, house prices grew 4.1%, slower than the 4.7% rise in December. Prices were expected to climb 4.3%.