Dec 29, 2023: European shares surged early on the final trading day of the year, driven by media stocks, setting the stage for robust yearly gains amidst growing expectations of a more lenient monetary policy from major central banks in the upcoming year.
The pan-European STOXX 600 climbed 0.2% by 0811 GMT, marking its seventh consecutive weekly gain and showcasing its most impressive December performance since 2021.
Global markets have experienced a rally since mid-December following indications from the U.S. Federal Reserve suggesting potential interest rate cuts in the upcoming year. However, the European Central Bank (ECB) has not echoed a similar stance.
Nevertheless, the STOXX index is poised to conclude the year with nearly a 13% surge, with notable strength observed in sectors like technology and retail, among others.
During the session, media stocks surged by 0.6%, accompanied by a 0.4% increase in personal and household goods, marking their first positive movement in five sessions.
Spanish stocks also displayed gains, rising by 0.3% after a preliminary report indicated a slight drop in the 12-month inflation rate in December, declining from 3.2% in November to 3.1%.
Given the impending New Year holiday, trading volumes are anticipated to be light on this final trading day, with European stock exchanges closed on January 1st.
