- European stock index surged on Tuesday, led by travel, leisure, and energy stocks, despite the holiday season.
- British homebuilder Vistry experienced an 18% drop due to delays in year-end transactions and completions.
- Investors are closely watching developments related to U.S. President-elect Donald Trump’s inauguration and potential trade policies.
- The Indian stock market ended positively on Monday, breaking a five-session losing streak, with gains in financial and metal stocks.
The primary stock index in Europe experienced a surge on Tuesday, with travel, leisure, and energy stocks leading the way in a market advance that spanned multiple sectors. This uptick in activity occurred amidst light trading volumes as the market prepared for the Christmas break. The pan-European STOXX 600 saw a 0.2% increase as of 0815 GMT, with many markets either closed or operating on reduced hours due to the holiday.
In particular, Amsterdam, Brussels, and Paris were operating on half-day trading sessions, while Frankfurt and Milan were closed entirely. This resulted in low trading volumes throughout the day. Despite these closures, the travel and leisure sector managed to recover some of its losses, posting a 0.5% gain after a slide on Monday. The energy sector also saw a 0.5% increase, following the trend of rising oil prices.
However, not all companies experienced gains. British homebuilder Vistry saw an 18% drop, landing at the bottom of the STOXX 600 after issuing a warning about its fiscal 2024 profit for the third time. The company cited delays to expected year-end transactions and completions as the reason for the warning.
Investor Watch: Trump’s Inauguration and Trade Policies
As the New Year approaches, investors are keeping a close eye on developments related to U.S. President-elect Donald Trump’s White House inauguration on January 20. Trump has made threats of import tariffs against crucial economies, including China and Mexico. These expected policies are considered inflationary and have already been factored into the Federal Reserve’s monetary policy outlook. The European Central Bank, which has delivered back-to-back rate cuts this year, has flagged prospective trade tensions with the U.S. under Trump.