(Bloomberg) -- European stocks posted their first weekly gain in three on Friday as they resumed trading after the Christmas break.
The Stoxx Europe 600 Index ended the session 0.7% higher, its best day in a month, albeit in holiday-thinned volumes. Automotives, banks and financials fared best while retailers lagged.
Among individual stocks, Delivery Hero SE slumped as much as 9% after the Taiwanese anti-trust regulator rejected Uber Technologies Inc.’s plan its to buy its Foodpanda business on the island for $950 million.
David Kruk, head of trading at La Financiere de L’Echiquier in Paris, said European stocks may lack clear drivers in the final trading sessions of 2024, given holiday-reduced volumes.
“There could be some short-covering from hedge funds, which could lift markets a bit, but these are technical moves, not based on fundamentals,” Kruk said.
After rallying as much as 10% to a record high by September, the Stoxx 600 has halved that advance into year-end on concerns about regional political uncertainty and the threat of US tariffs under President-elect Donald Trump.
The benchmark regional index has dropped 3% in the fourth quarter and is heading for the biggest decline since the third quarter of 2022. It posted a gain of 1% for this week, though.
France’s CAC 40 has been among the underperformers this year, declining about 2.5% on higher political risks while Germany’s Dax led European stock markets, gaining over 15% excluding dividends.
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--With assistance from Kit Rees.
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