European Stocks Kick Off 2025 with a Volatile Start

European stocks experienced volatility on the first trading day of 2025 following a late-year selloff. Concerns about U.S. policies and valuation pressures led to market fluctuations. While oil and gas saw gains, banks and automakers faced losses. Economic uncertainties in Europe remain, affecting investor sentiment.

European stocks demonstrated instability on their first trading day of 2025, extending the concerns of a late-year selloff highlighted by valuation worries and policy shifts under new U.S. leadership.

The STOXX 600 index experienced a slight dip of 0.2% by mid-morning trade. Despite a brief rally, the market struggled with low trading volumes as investors gradually returned from New Year celebrations. Meanwhile, the oil and gas sector noted a 1% rise, buoyed by an increase in crude prices following China's growth commitments.

Financial services and automotive industries were particularly hit, each witnessing a decline of over 1.5%. Although 2024 marked a 6% rise for European stocks, significant challenges such as interest rate uncertainties and mixed economic indicators continue to shape market dynamics.

(With inputs from agencies.)