European stocks were relatively quiet in the last trading session of 2024, as uncertainties surrounding monetary policy and political changes halted a rally that had driven several markets to record highs earlier in the year.
The pan-European STOXX 600 was flat by 0821 GMT, and was on track for its worst quarterly performance in over two years.
Trading volumes were low, with stock exchanges in Germany, Italy, and Switzerland already closed, while those in France, Spain, and the UK were set to close early on Tuesday.
High valuations, rising Treasury yields, and uncertainties about 2025 have all contributed to the risk-off sentiment in recent sessions on both sides of the Atlantic, although the main U.S. indexes have posted strong gains this year.
The S&P 500 is up nearly 24% in 2024, while the STOXX 600 is up only 5.4% as a result of a slowing European economy, difficulties faced by automakers, and political unrest in France.
German stocks have outperformed broader European markets this year with a nearly 19% increase, while political instability and concerns about a widening fiscal deficit have weighed on Italy’s FTSE MIB, pushing it down 3.1% year-to-date.
The UK’s FTSE 100 appeared to be heading for a nearly 5% increase in 2024, marking its fourth consecutive year of gains.