Europe midday: Shares stay red after weak Asia, eurozone PMI surveys
European shares were firmly in red territory at midday on the first day of trading in 2025, giving up a bright start, as investors braced themselves for an incoming Donald Trump administration and also digested downbeat surveys in Asia and the eurozone.
The pan-European Stoxx 600 index reversed early gains to be down 0.21% at 506.64, reflecting a mixed situation among major continental bourses. France's CAC-40 underperformed with a 1% decline, while the UK's FTSE 100 was the outlier - up 0.17%.
Asian shares were also mixed after growth in factory sector activity in the People's Republic of China slowed at the end of 2024, amid softer export demand, according to the results of a closely followed survey.
Private sector survey compiler Caixin reported a decline in its manufacturing sector Purchasing Managers' Index from a reading of 51.5 in November to 50.5 for December.
Economists had forecast a reading of 51.7.
Meanwhile, the contraction of the eurozone's manufacturing sector was slightly worse than originally estimated in December, according to revised estimates from S&P Global and the Hamburg Commercial Bank (HCOB).
The final reading of the single-currency region's manufacturing purchasing managers' index came in at 45.1, down from the initial estimate of 45.2 released two weeks ago which was unchanged from November.
This was the 30th successive sub-50.0 reading – the level which separates contraction and growth – marking two and a half years of continuous decline in factory operating conditions across the eurozone.
In the UK, house prices inched closer to record highs in December, according to Nationwide, though the market is likely to see increased volatility over the next few months ahead of the introduction of new changes to stamp duty.
Nationwide reported on Thursday that UK house prices rose 0.7% over the month of December to £269,426, up 4.7% on last year, to sit just below an all-time high (£273,751) recorded in summer 2022.
There was little corporate news to drive sentiment. Vestas Wind Systems gained after the Danish wind turbine maker unveiled its latest list of new orders.
Reporting by Frank Prenesti for Sharecast.com