Investing.com – European Stock Markets Decline Slightly

European stock markets slipped slightly lower on Monday, marking the final full trading day of 2024, as investors took profits following a generally positive year for regional markets.

At 04:35 ET (09:35 GMT), the DAX index in Germany traded largely flat, the CAC 40 in France slipped by 0.1%, and the FTSE 100 in the U.K. dropped by 0.3%.

Muted European Trading

Trading is expected to be muted on Monday as markets prepare for the New Year holiday, with many European indices set to close early on Tuesday.

The pan-European STOXX 600 index traded marginally lower but is still on track for a gain of around 5.5% this year, with the German DAX up over 19%, the FTSE 100 up by 5%, while the CAC 40 has underperformed, dropping by 2.6%.

Spanish Inflation Rises

Data released earlier on Monday showed Spain’s annual EU-harmonized inflation rate rose to 2.8% in December, up from the 2.4% figure recorded in November.

The European Central Bank (ECB) cut interest rates earlier this month and signaled more cuts ahead as economic growth in the region stagnates. However, the next cut might take longer after a recent uptick in inflation, according to ECB Governing Council member Robert Holzmann.

"I don't see any interest rate hikes at the moment. What could happen, though, is that one takes more time until the next interest rate cut," Holzmann told the Austrian newspaper Kurier.

Eurozone annual inflation accelerated in November to 2.2% from 2.0% the previous month, exceeding the ECB's 2% target rate.

Siemens Healthineers Falls

In the corporate sector, Siemens Healthineers (ETR:SHLG) stock dipped 1% following reports that Siemens' (ETR:SIEGn) Chief Financial Officer Ralf Thomas stated the company is reviewing its majority stake in its medical technology unit.

Crude Slips Ahead of Fed Meeting

Crude prices slipped slightly lower on Monday in thin holiday-impacted trading as the final week of the year begins.

By 04:35 ET, US crude futures (WTI) dropped 0.1% to $70.53 a barrel, while the Brent contract fell 0.1% to $73.69 a barrel. Both benchmarks are on track for substantial losses in 2024, with the WTI contract down around 1.5% and Brent over 4% lower, mainly due to concerns over slowing demand in China, the world's largest oil importer.