(Reuters) – European stocks were muted in the final trading session of 2024, as uncertainty around the monetary policy path and political shifts halted a rally that had pushed several markets to record highs earlier this year.
The pan-European STOXX 600 was flat by 0821 GMT, and the benchmark was on course for its worst quarterly showing in more than two years.
Trading volumes were thin, with bourses in Germany, Italy and Switzerland already closed, while those in France, Spain and the UK set for an early close on Tuesday.
High valuations, climbing Treasury yields and uncertainties about 2025 have all contributed to the risk-off sentiment in the past few sessions on both sides of the Atlantic but the main U.S. indexes have posted strong gains this year.
The S&P 500 is up nearly 24% in 2024 while the STOXX 600 is up just 5.4% as a slowing European economy, automakers’ troubles and political turmoil in France weighed on the mood.
German stocks outperformed broader European markets this year with a near 19% jump, while political instability and concerns about a widening fiscal deficit weighed on France’s CAC 40, pushing it down 3.1% year-to-date.
The UK’s FTSE 100 looked set for a near 5% rise in 2024, its fourth consecutive year of gains.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Mrigank Dhaniwala)
Comments