LONDON — European markets were higher Monday, as investors monitored the global economic and interest rate outlook heading into the final trading month of the year.
The regional Stoxx 600 reversed an earlier to decline to trade 0.3% higher by 11:13 a.m. London time, after the index closed out November with its strongest monthly performance since August. France’s CAC 40 index remained in the red, down 0.4%, as investors monitored ongoing political volatility in the country.
Shares of Jeep-maker Stellantis fell 8% after CEO Carlos Tavares announced his immediate resignation over the weekend, citing “different views” between the executive and the board of directors. The European-American company has been struggling with declining sales and high inventories in the U.S.
Data releases showed a deterioration in manufacturing sector activity in both the euro zone and the U.K., while the unemployment rate in the European Union remained steady in October.
The latest tariff threats from U.S. President-elect Donald Trump are also in focus, as the world gears up for a potential escalation in trade tensions in 2025.
“No one has the information we need to actually know how to trade these markets as we get into next year… But I think overall, you’re putting in place a policy of protectionism. That means America first,” Richard Kelly, head of global strategy at TD Securities, told CNBC’s “Squawk Box Europe” on Monday.
“When you look on the macro side, what we have the biggest conviction around is that U.S. inflation will be higher than what was expected, and global growth will be lower than what was expected,” Kelly said, adding that the question now was whether central banks in Europe would consequently speed up monetary easing while the Federal Reserve slows it down.
Asia-Pacific markets traded slightly higher overnight as the region kickstarted a data-heavy week. Over the weekend, China released its official purchasing managers’ index reading for November, which came in at the highest level since April.
U.S. stock futures were slightly lower, coming off a winning week and month for stocks in November which centered on a postelection rally after President-elect Donald Trump’s win.
