(Bloomberg) -- Equity markets in the UK and France edged higher in thin trading, while most major European benchmarks were closed for the Christmas holidays.
The UK’s FTSE 100 rose 0.4%, while France’s CAC 40 Index climbed 0.1%. Both markets traded for a half session, and volumes were more than 60% below the 30-day average, according to data compiled by Bloomberg.
Bourses in Germany, Italy, Denmark, Switzerland and Finland were shut through the day. Vistry Group Plc plunged as much as 20% after it lowered its guidance, citing delays to expected year-end transactions and completions.
European stocks are finishing off a roller-coaster year with small gains. After rallying as much as 10% to a record high by September, the Stoxx 600 halved that advance into year-end on concerns about regional political uncertainty and the threat of US tariffs under President-elect Donald Trump.
France’s CAC 40 has been among the underperformers this year, declining about 3% on higher political risks. Prime Minister Francois Bayrou said he aimed to reach an agreement with parliament on a 2025 budget that would reduce the country’s deficit to close to 5%.
Although most investors are betting that European equities will continue to trail US peers next year, some argue that low allocations mean any bullish surprises could give the market a boost.
“In 2025, we should potentially get some positive news in Europe and it could be a nice contrarian trade to be played,” said Alberto Tocchio, a portfolio manager at Kairos Partners. “It is not an obvious call, but Europe could be the nice spot for next year, while a lot is priced to perfection” in the US, he said.
For more on equity markets:
- More of the Same Is Europe’s Best Bet for 2025: Taking Stock
- ADVISORY: M&A Watch Europe Will Resume Jan. 2
- ADVISORY: ECM Watch Europe Will Resume Jan. 6
- US Stock Futures Little Changed; Intl Seaways Gains
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--With assistance from Michael Msika.
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