(Bloomberg) -- European equities dropped on Tuesday, snapping an eight-day winning streak, as optimism over China stimulus receded.
The Stoxx Europe 600 Index was down 0.5%, close to the session’s low. Losses across luxury goods makers, industrials and telecom stocks saw the benchmark slip from a seven-week high.
Among individual movers, Delivery Hero SE shares sank as Talabat Holding Plc, its Middle Eastern unit, turned negative in its trading debut. Ashtead Group Plc shares dropped after the industrial equipment rental firm proposed moving its primary listing to the US from London.
European stocks have rebounded strongly in December, with autos, consumer goods, retail and technology sectors boosted by hopes that Beijing will embrace a “moderately loose” monetary policy in 2025.
The next test for this year-end rally will be the European Central Bank’s meeting on Thursday, its first since governments in Paris and Berlin both collapsed over budget talks. Policymakers are widely expected to cut rates, though uncertainty remains as markets await the incoming presidency of Donald Trump and a possible trade war.
Colin Graham, head of multi asset at Robeco, is more positive than the market on Eurozone equities, given he expects the region’s economy to grow above trend in 2025.
“Eurozone stock markets have already performed well, just not as well as the US,” Graham said. “Sentiment is very poor on European equities and much of the bad news already is in the price.”
For more on equity markets:
- China Is Yet Again a Catalyst Heating Up Europe: Taking Stock
- M&A Watch Europe: Spar Nord, Prudential, Anima, Unilever, Talgo
- Bankers Say Europe IPO Market to Defy Dangers in 2025: ECM Watch
- US Stock Futures Little Changed; Fluence Energy, Oracle Fall
- The Battle for Boohoo’s Board : The London Rush
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