Investing.com — European stock markets closed higher on Tuesday with low volumes affected by the holidays.
At 11:30 ET (16:30 GMT), the UK bond was up 0.4% and was up more than 0.1% while closed.
Most European markets closed early on Tuesday and remain closed on Wednesday for Christmas.
ECB will cut rates further in 2025
The DAX has outperformed the major indices so far in 2024, gaining more than 18%, while the FTSE 100 is up just 5% and political turmoil has dragged the CAC 40 down more than 3%.
The European Central Bank cut its key interest rate earlier this month for the fourth time this year and is likely to cut interest rates further as 2025 progresses.
ECB President Christine Lagarde and the bank’s most influential hardliner, Isabel Schnabel, consolidated market bets on further gradual reductions in borrowing costs in the eurozone as the economy falters and fears over a high inflation fade away.
“If incoming data continues to confirm our baseline, the direction ahead is clear and we hope to lower interest rates further,” Lagarde said in a speech in Vilnius.
Inflation in the euro zone was 2.3% last month and the ECB expects it to settle at its 2% target next year after reaching double digits following Russia’s large-scale invasion of Ukraine. in 2022.
ECB will cut rates further in 2025
There is little major corporate news on Tuesday, but housebuilding firm Vistry Group (LON:) revised its expected adjusted pre-tax profit for FY24 to around £250m, down from its previous guidance of £ 300 million.
Additionally, healthcare company Kooth (LON:) has secured a $1.45 million pilot contract with the state of New Jersey to provide mental health support to 50,000 students ages 13 to 18 through its platform. Soluna.
Oil prices remain firm in a thin session of activity
Oil prices rose in a tight range on Tuesday as traders weathered concerns about a possible oversupply and weakening demand in 2025.
At 11:30 ET, futures gained 1.4% to $73.3 per barrel, while West Texas Intermediate futures rose 1.6% to $70.4 per barrel.