European markets opened higher Monday, looking to shake off a choppy start to the year for stocks.
The regional Stoxx 600 index ticked up 0.3% in early deals, while sector gains were driven by technology and autos, up 1.4% and 1.3%, respectively.
Finnish fuel producer Neste led gains, up nearly 5%, continuing positive momentum after last week announcing its biggest ever contract for supplying sustainable aviation fuel.
European markets
The Stoxx 600 had a mixed performance last week, though it ended 0.2% higher amid a rocky start to 2025 for stocks around the world. Mixed sentiment could continue this week as traders look for more clues on where the global economy is headed and brace for the return of Donald Trump to the White House.
It’s a relatively quiet day for data and earnings in Europe, but readings on Spanish business activity and German inflation are due.
Overnight, Asia-Pacific markets were mixed on Monday as investors assessed business activity data from China and Hong Kong.
Meanwhile, U.S. equity futures were little changed early Monday morning as investors looked ahead to the December jobs report on Friday; the data will be one of the last key pieces of data before the Federal Reserve’s meeting at the end of the month.
Investors stateside will also watching the Job Openings and Labor Turnover Survey Tuesday and December ADP Employment Survey Wednesday.
The U.S. trading week will be shorter this week, with the New York Stock Exchange closed Thursday to mourn the death of former President Jimmy Carter.
— CNBC’s Tanaya Macheel contributed to this market summary
Novo Nordisk shares slip 1.8% after target price cuts
Ozempic-maker Novo Nordisk was down 1.8% in early morning deals after analysts cut target prices on the stock.
Berenberg cut its target price to 725 Danish krone ($100.52) from 975 Krone, while Jefferies cut its target price to 515 Krone from 575 Krone.
Europe’s most valuable company plunged 20% on Dec. 20 after results in a late-stage trial for its experimental CagriSema weight loss drug missed expectations.
Novo Nordisk share price.
— Jenni Reid
Europe stocks open higher
European stock markets opened broadly higher Monday, with the Stoxx 600 index up 0.29% at 8:15 a.m. in London.
France’s CAC 40 index jumped 0.77% as Germany’s DAX gained 0.4%. The U.K.’s FTSE 100 bucked the trend to dip 0.1%.
Stoxx 600 index.
— Jenni Reid
Survey finds British business confidence at lowest level since 2022 ‘mini-budget’
Confidence among British firms has tumbled to its lowest level since the market-rocking “mini-budget” crisis in fall 2022, according to a survey by the British Chambers of Commerce.
The trade group said sentiment had “declined significantly” in its largest poll since the Labour government’s debut budget last October, which included a hike in the amount many employers pay out in National Insurance (NI), a tax on earnings.
Rachel Reeves, UK chancellor of the exchequer, outside 11 Downing Street ahead of presenting her budget to parliament in London, UK, on Wednesday, Oct. 30, 2024.
Bloomberg | Bloomberg | Getty Images
The BCC said 63% of businesses cited tax as a worry in the survey, up from 48% in the third quarter. Concern about inflation and interest rates remained roughly steady.
The percentage of companies saying they expected turnover to increase in the next twelve months fell to 49%, from 56%
“Firms of all shapes and sizes are telling us the national insurance hike is particularly damaging. Businesses are already cutting back on investment and say they will have to put up prices in the coming months,” said Shevaun Haviland, the BCC’s director general.
“The government is rightly coming up with long-term strategies on industry, infrastructure and trade. But those plans won’t help businesses struggling now.”
The Labour Party argues tax rises were necessary to plug a shortfall in the public finances left by the previous administration. It has also previously stated that more than half of U.K. employers will either experience a cut or no change in their national insurance bills due to exemptions.
— Jenni Reid
Volkswagen extends Xpeng partnership with China EV charging network
Germany’s Volkswagen and China’s Xpeng Motors announced Monday they would expand their partnership to share electric vehicle charging piles, creating “one of the largest super-fast charging networks in China.”
The automakers said they had a combined 20,000 charging stations across 420 cities in China which would be available to their respective customers.
They said they would also look into the possibility of building co-branded super-fast charging stations in the country.
Volkswagen — which is facing myriad problems, including tepid European demand for passenger vehicles — has partnered with EV manufacturer Xpeng since 2023 on the joint development of electric cars for delivery in China.
Automakers broadly are struggling with cost competitiveness in the EV space, which is expected to drive industry consolidation such as the proposed Honda-Nissan merger.
— Jenni Reid
Crypto under pressure after bitcoin and ether post best weeks since Dec. 6
Bitcoin and ether are coming off their best weeks since Dec. 6, after they turned in their first positive weeks in four on Friday. They each gained about 4% for the week. On Sunday night they were lower by less than 1% each, according to Coin Metrics.
Solana had its best week since November 22nd, notching a more than 4% weekly gain. It traded lower by 1.25% Sunday night.
— Tanaya Macheel, Gina Francolla
CNBC Pro: From EVs to beauty: Strategist names four stocks to buy in 2025
The outlook for equity markets this year looks uncertain, with one market strategist describing the new year as “stepping into a house of cards.”
“The stock market may fluctuate in 2025, but significant opportunities will arise for those focused on individual stock picks,” Michele Schneider, chief market strategist at Marketgauge.com, said.
— Amala Balakrishner
European markets: Here are the opening calls
European markets are expected to open mostly higher Monday.
The U.K.’s FTSE 100 index is expected to open 4 points lower at 8,220, Germany’s DAX up 50 points at 19,953, France’s CAC up 22 points at 7,296 and Italy’s FTSE MIB up 113 points at 34,308, according to data from IG.
There are no key earnings or data releases Monday.
— Holly Ellyatt