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European stocks closed on a positive note on Thursday with investors closely following the developments in France, and digesting the latest batch of regional economic data.<\/p>\n
French President Emmanuel Macron seeks a way out of France’s political crisis as Prime Minister Michel Barnier has been ousted in a no-confidence vote over a budget dispute. That makes Barnier the shortest serving prime minister in modern French history.<\/p>\n
It is likely that France will remain without a government for several weeks, if not months, until Macron appoints a new prime minister, who will have to form a new government.<\/p>\n
The State budget and the social security budget for 2025 will not be voted on, but the constitution allows special measures that would avert a U.S.-style government shutdown.<\/p>\n
The pan European Stoxx 600 gained 0.4%. The U.K.’s FTSE 100 climbed 0.16%, Germany’s DAX advanced 0.63% and France’s CAC 40 closed up 0.37%. Switzerland’s SMI edged up 0.06%.<\/p>\n
Among other markets<\/span> in Europe, Austria, Finland, Greece, Netherlands, Poland, Portugal, Russia, Spain, Sweden and Turkiye closed higher.<\/p>\n Belgium and Denmark ended weak, and Norway closed flat. <\/p>\n In the UK market, Hiscox rallied more than 5%. Whitbread, Diageo, Admiral Group, IAG, Vodafone Group, Intertek Group, BT Group and Barclays gained 2 to 4%.<\/p>\n Aviva, Easyjet, Centrica, IHG, Sainsbury (J), Natwest Group, Beazley, Imperial Brands, British American Tobacco and Legal & General advanced 1.3 to 2%.<\/p>\n AstraZeneca gained about 1.3% as Imfinzi receives FDA approval<\/span> for limited-stage small cell lung cancer. Future Plc soared nearly 10% after reporting its full-year results for 2024.<\/p>\n Frasers Group tanked nearly 11% as the sportswear and fashion retailer lowered the upper end of its full-year profit forecasts.<\/p>\n British Land tumbled 5%. Segro ended nearly 3% down. Smith (DS) lost about 2.5% after reporting declines in half-year revenue and profits. <\/p>\n Londonmetric Property, Associated British Foods, Scottish Mortgage, Convatec Group, Melrose Industries, Shell, Croda International and ICG lost 1.3 to 2.5%.<\/p>\n In the German market, Puma climbed nearly 5%. Commerzbank, Siemens Energy, Continental, BMW, Deutsche Post, HeidelbergCement and Fresenius Medical Care gained 2 to 3%.<\/p>\n Zalando, Deutsche Post, Rheinmetall, Allianz, Deutsche Boerse, Hannover Rueck, Bayer, Adidas and Daimler Truck Holding also closed with strong gains.<\/p>\n Sartorius, Vonovia, Merck, Qiagen, RWE, MTU Aero Engines and Beiersdorf closed with sharp to moderate losses.<\/p>\n In the French market, bank stocks gained on hopes that the government can avoid a shutdown.<\/p>\n Accor surged 5%. Societe Generale, Stellantis, Pernod Ricard, Edenred, Renault, Credit Agricole, AXA, Veolia, Orange, BNP Paribas, Bouygues, Vinci, Michelin, Saint Gobain, ArcelorMittal, Vivendi and Engie gained 1.5 to 4.2%.<\/p>\n Safran tumbled more than 6.5% after issuing new financial targets.<\/p>\n On the economic front, manufacturing new orders in Germany declined at a slower than expected pace in October amid a slump in domestic demand, while the gain for September was revised up significantly due to a big order in the shipbuilding industry, preliminary data from the statistical office Destatis showed.<\/p>\n Orders shrunk a seasonally and calendar-adjusted 1.5% from the previous month, which was less severe a fall than the 2% slump economists had forecast. The September gain in new orders was revised up to 7.2% from the originally reported 4.2%.<\/p>\n France’s industrial production fell 0.1% on month in October, following a 0.8% decline in September. Economists had forecast a monthly rebound of 0.3%.<\/p>\n The UK construction sector’s growth picked up pace in November, driven by a strong upturn in commercial work. The construction Purchasing Managers’ Index rose to 55.2 in November from 54.3 in October. The index signaled growth for the ninth consecutive month.<\/p>\n Eurozone retail sales declined for the first time in four months in October, and at a faster-than-expected pace. Retail sales logged a decrease of 0.5% on a monthly basis in October, reversing a 0.5% rise in September. The expected fall was 0.4%. Year-on-year, retail sales growth eased to 1.9% from 3% in September.<\/p>\n Germany’s construction sector logged further steeper contraction in November. The HCOB construction Purchasing Managers’ Index fell to 38.0 from 40.2 in October.Among categories, housing activity was the worst-performing sector, and the commercial work fell at the fastest pace since January. Meanwhile, civil engineering declined at a slightly slower pace.<\/p>\n Switzerland’s unemployment rate increased slightly in November after remaining stable in the previous month. The unadjusted unemployment rate came in at 2.6% in November, up from 2.5% in October. In the corresponding month last year, the jobless rate was 2.1%. <\/p>\n<\/p>\n Market Analysis<\/p>\n<\/div>\n