Monday, December 16, 2024

European markets close higher for eighth straight session; luxury stocks rise on China stimulus hopes

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European stocks continued their positive run on Monday, as investors weighed Chinese stimulus measures and geopolitical turmoil.

The pan-European Stoxx 600 closed higher for an eighth straight session, moving past earlier choppiness to record a 0.14% gain. It is the longest stretch in the green for the regional index since May.

China’s leaders on Monday vowed “more proactive” fiscal measures and “moderately” looser monetary policy for next year, moves which could boost domestic consumption.

The announcement buoyed European luxury stocks, with Gucci-owner Kering gaining around 4%.

Hong Kong stocks rose around 3%, though Asia-Pacific markets were otherwise mixed overnight. South Korea’s Kospi stock index fell over 2% after President Yoon Suk Yeol survived an impeachment vote over the weekend.

Shares of BP jumped 5% as the company announced a merger of its offshore wind business with Japanese power company JERA in a new joint-owned firm. BP is thought to be prioritizing its fossil fuel operations as it seeks to boost profitability.

Traders were meanwhile assessing geopolitical upheaval in the Middle East after the ousting of Syrian President Bashar al-Assad over the weekend. Western leaders have greeted the overthrow of the Assad dynasty by rebel forces with caution, fearing a power vacuum and more instability in the region.  

Stateside, U.S. stock markets were mostly lower in morning deals, dragged down by tech darling Nvidia. A regulator in China on Monday said it was investigating the chipmaker over possible violations of the country’s antimonopoly law.

Investors are awaiting November’s U.S. consumer price index, due out Wednesday, which is expected to show a slight uptick in pricing pressures.

— CNBC’s Sarah Min contributed to this market summary

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