European stocks edged lower at the close of a holiday-shortened week as traders focused on economic data for signals on interest rate trends and potential policy shifts under Donald Trump’s upcoming presidency.
The pan-European STOXX 600 index slipped 0.1% by 0815 GMT but remained on track for a 0.7% weekly gain, amid subdued trading activity following the New Year holidays.
Swiss stocks gained 0.5% during their first trading session of 2025, while Germany’s DAX declined 0.2%, and France’s CAC 40 fell 0.5%.
Sectors with significant exposure to China, including miners and automakers, faced selling pressure despite assurances from a Beijing official that China plans to substantially boost funding through ultra-long treasury bonds in 2025 to encourage business investment and consumer spending.
Concerns over China’s economic outlook and fears of a potential trade conflict with the U.S. have heightened ahead of Donald Trump’s inauguration on January 20.
Among individual stocks, Tullow Oil (LON:TLW) soared 12.5% after the company announced it would not be required to pay $320 million in taxes, following a favorable ruling from the International Chamber of Commerce regarding its operations in Ghana.
