European stock markets are expected to open 2025 with a profit

(ABM FN-Dow Jones) European stock markets are set to open higher on Thursday after no trading on New Year’s Day.

IG predicts an opening gain of 101 points for the German DAX and a plus of 27 points for the French CAC 40. The British FTSE looks to open 16 points higher.

Stock markets in Europe ended higher on Tuesday, New Year’s Eve. The German DAX kept its door closed.

According to analyst Corné van Zeijl of Cardano, European shares are now worth buying again.

In terms of valuations, US stocks are “super expensive”. These shares are “priced for perfection”. Those valuations are a lot lower in Europe, but “major international investors avoid Europe”, and that is logical, according to Van Zeijl. There is a lot of uncertainty, including on a political level. And a recession seems imminent.

2024 was also less successful for the Stoxx Europe 600 than for the American stock exchanges. The pan-European index rose by ‘only’ 6 percent last year. Despite the political struggles, 2024 was a strong year for the German DAX, with a gain of almost 19 percent and a peak above the magical limit of 20,000 points. Our eastern neighbors can go to the polls in February.

The French stock market fared less well last year. The CAC 40 lost more than 2 percent in 2024. In July, a left-wing bloc surprisingly won the elections, but forming a government proved difficult. At the beginning of December, Prime Minister Michel Barnier had to leave the field after a vote of no confidence following arguments over the budget.

Euro STOXX 50 4,895.98 (-0.06%)

STOXX Europe 600        507,62 (+0,6%)

DAX                  19.909,14 (-0,4%)

CAC 40                7.380,74 (+0,9%)

FTSE 100              8.173,02 (+0,6%)

SMI                  11.600,90 (+0,1%)

AEX 878.63 (+0.8%)

BEL 20                4.264,53 (+0,9%)

FTSE MIB             34.186,18 (+0,1%)

IBEX 35              11.595,00 (+0,5%)

US STOCKS

Wall Street is heading into a green opening on Thursday after the trading floor remained empty on New Year’s Day on Wednesday.

The American stock markets ended lower on Tuesday, the last day of the year. Wall Street did make nice gains in 2024, with the S&P 500 gaining about 23 percent and the Nasdaq Composite more than 28 percent. The Dow also did well with almost 13 percent.

For the S&P, this is the second year in a row that the index has risen more than 20 percent. “Two fantastic years,” said investment strategist Frank Vranken of Edmond de Rothschild.

Investment strategist Ralph Wessels from ABN AMRO is going for “America First” in 2025.

Incoming President Donald Trump may be a risk, but he will also cut taxes and bring about deregulation. “That is positive for profit development and margins.”

Furthermore, the IT sector will also continue to do well, ABN AMRO predicts. “Generative AI goes to the next step.”

Bitcoin cost more than $93,538 on Tuesday. The peak this year was reached in December, at $108,000.

The price for a barrel of WTI oil rose by more than one percent on Tuesday, following reasonable macro data from China.

On a macroeconomic level it was quiet, with only US house prices up according to Case Shiller. Prices rose less rapidly in October, just like a month earlier.

S&P 500 index               5.881,63 (-0,4%)

Dow Jones index            42.544,22 (-0,1%)

Nasdaq Composite           19.310,79 (-0,9%)

ASIA

The Asian stock markets were firmly in the red on Thursday. An S&P purchasing managers index showed a slowdown in Chinese industry growth.

Nikkei 225 closed

Shanghai Composite     3.280,59 (-2,1%)

Hang Seng 19,662.96 (-2.0%)

VALUE

The euro/dollar was trading at 1.0363 this morning. On Tuesday evening, the currency pair was already trading below 1.04.

USD/JPY Yen   157,19

EUR/USD Euro  1,0363

EUR/JPY Yen 162.89

MACRO-AGENDA:

15:00 Case Shiller house prices – October (US) 00:00 Japanese stock market closed

03:45 Purchasing managers index industry Caixin – December (Chi)

09:00 Purchasing managers index industry – December (NL)

09:15 Purchasing managers index industry – December final. (Spa)

09:45 Purchasing managers index industry – December final. (Ita)

09:50 Purchasing managers index industry – December final. (Fra)

09:55 Purchasing managers index industry – December final. (Gld)

10:00 Purchasing managers index industry – December final. (eur)

10:00 Money supply – November (eur)

10:30 Purchasing managers index industry – December final. (UK)

1:00 PM Mortgage Applications – Weekly (US)

2:30 PM Aid Applications – Weekly (US)

15:45 Purchasing managers index industry – December final. (US)

4:00 PM Construction Spending – November (US)

COMPANY NEWS:

– No agenda items

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ABM Financial News is the supplier of stock market news in the Benelux. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.