European Markets Close On Firm Note

(RTTNews) - European stocks closed higher on Monday with investors reacting positively to slightly encouraging services sector data from the region, and stronger-than-expected services sector growth in China.

The upside was also due to expectations of more stimulus from the Chinese government, and easing concerns about tariff hikes amid reports U.S. President-elect Donald Trump's tariff plan will not be any significantly sharp.

Shares from automobile and luxury sectors were among the prominent gainers in the session.

The pan European Stoxx 600 climbed 0.95%. The U.K.'s FTSE 100 gained 0.31%, Germany's DAX closed up 1.56% and France's CAC 40 ended stronger by 2.24%, while Switzerland's SMI gained 0.58%.

Among other markets in Europe, Austria, Belgium, Greece, Iceland, Ireland, Netherlands, Poland, Spain, Sweden and Turkiye closed higher.

Denmark, Portugal and Russia ended weak, while Norway closed flat.

In the UK market, JD Sports Fashion, ICG, Antofagasta, Lloyds Banking Group, Entain, Barclays, Aviva, Melrose Industries, Diageo and Scottish Mortgage climbed 2 to 4%.

Anglo American Plc, Persimmon, Prudential, Pershing Square Holdings, Ashtead Group, Natwest Group, Schrodders, BP and Barratt Redrow also closed notably higher.

Shares of instrumentation and controls provider Spectris Plc gained 2.7% after HSBC upgraded the stock's rating to "buy" from "hold".

WPP ended nearly 3% down. Rolls-Royce Holdings closed lower by 2.56%. Unilever ended nearly 2.5% down following a rating downgrade, and Marks & Spencer closed down by about 2%.

RightMove, Reckitt Benckiser, Rentokil Initial, Endeavour Mining and National Grid lost 1 to 1.25%.

In the German market, Infineon climbed more than 8%

Daimler Truck Holding and Sartorius, both gained nearly 6%. Siemens Energy, BMW, Porsche, Bayer, Continental, Mercedes-Benz, Siemens and Puma gained 3 to 5%.

Volkswagen gained more than 3%. According to reports, China's Xpeng Motors has signed a memoandum of understanding with Volkswagen to co-operate on an ultra-fast charging network in China.

Merck, Commerzbank, Adidas, Fresenius, HeidelbergCement, BASF, Siemens Healthineers, Deutsche Post, Fresenius Medical Care, Brenntag and SAP gained 1.4 to 2.5%.

Symrise, Deutsche Telekom, E.ON, Rheinmetall, Vonovia, Qiagen and Deutsche Boerse closed down 1 to 2%.

In the French market, STMicroElectronics jumped nearly 8% after Taiwan's Foxconn posted stronger than expected revenue for the fourth quarter.

Dassault Systemes rallied more than 5%. Schneider Electric, Hermes International, Legrand, LVMH, Stellantis, Teleperformance, Capgemini, Saint Gobain and Societe Generale gained 3 to 5%.

BNP Paribas, Pernod Ricard, Kering, Renault, Air Liquide, Michelin, Vivendi, Edenred, Sanofi, Eurofins Scientific, L'Oreal, Carrefour, Veolia, Accor, Credit Agricole, Unibail Rodamco and TotalEnergies climbed 1.5 to 3%.

Data from S&P Global said the Composite PMI in Germany increased to 48 points in December from 47.20 points in November of 2024, while Services PMI increased to 51.20 points in December from 49.30 points in November of 2024.

S&P Global said that the Euro Area's Composite PMI increased to 49.60 points in December from 48.30 points in November of 2024. The data said Services PMI in the Euro Area increased to 51.60 points in December from 49.50 points a month earlier.

Data from S&P Global showed that the HCOB France Composite PMI was revised up to 47.5 in December 2024, up from the flash estimate of 46.7 and above the ten-month low of 45.9 seen in November.

The HCOB France Services PMI rose to 49.3 in December 2024, up from the initial estimates of 48.2 and compared to 46.9 in the previous month. However, the manufacturing sector contracted sharply in December with reading for the month coming in at 41.9, compared to the preliminary estimate of 43.1.

S&P Global UK Services PMI rose to 51.4 in December 2024, up from November's 13-month low of 50.8 and exceeding expectations of 51, preliminary data showed.

The S&P Global UK Composite PMI was at 50.5 in December of 2024, remaining unchanged from the previous month and loosely in line with market expectations of 50.7, according to a flash estimate.

Consumer price inflation in Germany rose for a third month in a row, and at a faster than expected pace in December, to its highest level in 11 months led by higher food prices and services costs, though policymakers at the European Central Bank are likely to be less concerned at the recent spike in price pressures and press ahead with another interest rate reduction in the next policy session.

UK business sentiment deteriorated the most since the aftermath of the mini budget in late 2022, as firms became more concerned about taxation following the Chancellor's autumn statement, the latest quarterly survey from the British Chambers of Commerce showed on Monday.