European Stocks Bounce Back: A Post-Holiday Market Surge

European stocks rose at the start of 2025 following a year-end decline due to worries over valuations and policies under the new U.S. President Donald Trump. The STOXX 600 index climbed 0.3% after being hit by uncertainties surrounding interest rates and inflation concerns, while some companies, like Vestas Wind Systems and Intrum, saw significant gains.

European stocks made a notable recovery on Thursday as the market opened for the first trading session of 2025. Investors breathed a sigh of relief following a selloff at the end of the previous year, largely prompted by high valuations and policy concerns linked to incoming U.S. President Donald Trump.

By 0820 GMT, the pan-European STOXX 600 index recorded a 0.3% increase, nearing a two-week high. This marks a significant rebound for the index, which experienced its steepest quarterly decline in over two years from October to December. Concerns over interest rates and potential inflationary effects of Trump administration policies contributed to market volatility.

However, the past year proved to be relatively favorable for European stocks, with the index ending 2024 with a 6% gain. The U.S. market, driven by optimism over AI advancements and Federal Reserve interest rate cuts, reached historic highs. Among notable day's gains, Vestas Wind Systems saw a 5.5% rise due to new orders in Italy, while Intrum, Europe's largest debt collector, soared 16% after a U.S. court approved its restructuring plan.

(With inputs from agencies.)