Europe midday: Stoxx trims losses, but investors still jittery
European stockmarkets trimmed losses at midday on Friday as investors digested a lower-than-expected rise in German unemployment, although sentiment was tempered by worries about the potential unpredictability of the incoming Trump administration in the US.
The pan-regional Stoxx 600 was down 0.23% at 509.62. US stock markets continued their end-of-year decline into 2025, with all three Wall Street benchmarks registering yet more losses and the Nasdaq hitting a five-week low.
The Dow fell for the fourth straight session, slipping 0.4%, while the losing streak on the S&P 500 and Nasdaq entered its fifth day, with both indices losing 0.2%. For the Nasdaq in particular, the tech-heavy benchmark is now trading at its lowest mark (19,280.79) since 29 November.
“Wall Street looks set for a higher open, but it may end up being a replica of yesterday’s performance, with early optimism fading. With the US economy showing so much resilience, the hopes for successive interest rate cuts this year have fizzled out, with only two now expected, at the most,” said Hargreaves Lansdown analyst Susannah Streeter.
“Given the super-stellar year for US stocks in 2024, it’s not surprising a bit more caution has crept in amid uncertainty about monetary policy, especially with unpredictable changes from the White House expected.”
In economic news, the number of unemployed people in Germany rose by less than forecast last month, keeping the jobless rate unexpectedly steady, according to figures released by the government on Friday.
Some 10,000 additional people were without a job in December, giving a total of 2.869m for the month, according to federal labour office data.
However, the consensus estimate was looking for 15,000 increase month-on-month.
Oil prices hit two-month highs, with Brent Crude sitting just below $76 a barrel, helping major producers such as BP and Shell.
Reporting by Frank Prenesti for Sharecast.com