Investing.com — European stock markets slipped slightly Thursday, with investors digesting new economic data at the start of a new year, expecting the European Central Bank to continuing cutting interest rates to boost the struggling regional economies.
At 03:25 ET (08:25 GMT), Germany’s DAX traded largely flat, while the UK’s FTSE 100 fell 0.1% and France’s CAC 40 dropped 0.5%.
The main European indices struggled to compete with their US rivals last year, with regional growth hard to find. This is expected to result in the European Central Bank continuing to ease monetary policy reasonably aggressively in 2025, even as the Federal Reserve expressed caution over further cuts.
All eyes Thursday will be on the latest data on manufacturing activity in the eurozone, for signs how this important sector performed in the final month of 2024.
The early signs were relatively positive, after data showed that Spain’s manufacturing sector ended 2024 on a strong note, with both output and new orders accelerating in December.
The headline HCOB Spain Manufacturing Purchasing Managers’ Index rose to 53.3 in December from 53.1 in November, marking the 11th consecutive month above the 50.0 threshold that indicates growth.
However, the preliminary survey compiled by S&P Global in the eurozone two weeks ago showed a contraction of economic activity in December.
Vodafone (NASDAQ:VOD) completes sale of Italian operations
In corporate news, Vodafone (LON:VOD) stock rose 0.4% after the UK telecom giant completed the sale of its Italian division to Swisscom (OTC:SCMWY) for €8 billion in cash.
As part of the agreement, Vodafone will continue to provide certain services to Vodafone Italy for up to five years post-completion.
Proceeds from the sale will be used to reduce Vodafone’s net debt, with up to €2 billion earmarked for shareholder returns once the ongoing buyback program concludes.
Revolution Beauty and Chrysalis Investments reach settlement
Revolution Beauty (LON:REVB) stock soared over 13% and Chrysalis Investments (LON:CHRY) shares fell 0.9% after the pair resolved a legal dispute through a confidential settlement.
Under the terms of the settlement, Revolution Beauty agreed to pay Chrysalis a non-material sum, representing less than 1% of Chrysalis’ market capitalization.
Oil prices rise on optimism over China
Oil prices climbed on the first trading day of 2025, buoyed by optimism over a recovery in China’s economy.
Investors are hopeful about rising fuel demand from the largest importer in the world following President Xi Jinping’s pledge to prioritize growth.
At 03:25 ET, US crude futures (WTI) were up 0.4% at $71.96 per barrel, while Brent crude also gained 0.4%, trading at $74.90 per barrel.