Finance
European Stocks Set for Worst Quarterly Showing Since 2022
Published by Global Banking & Finance Review®
Posted on December 31, 2024
2 min readLast updated: January 27, 2026
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Quick Summary
European stocks face their worst quarter since 2022 amid policy and political uncertainties, with STOXX 600 flat in 2024's final session.
European Stocks Brace for Toughest Quarter Since 2022
(Reuters) - European stocks were muted in the final trading session of 2024, as uncertainty around the monetary policy path and political shifts halted a rally that had pushed several markets to record highs earlier this year.
The pan-European STOXX 600 was flat by 0821 GMT, and the benchmark was on course for its worst quarterly showing in more than two years.
Trading volumes were thin, with bourses in Germany, Italy and Switzerland already closed, while those in France, Spain and the UK set for an early close on Tuesday.
High valuations, climbing Treasury yields and uncertainties about 2025 have all contributed to the risk-off sentiment in the past few sessions on both sides of the Atlantic but the main U.S. indexes have posted strong gains this year.
The S&P 500 is up nearly 24% in 2024 while the STOXX 600 is up just 5.4% as a slowing European economy, automakers' troubles and political turmoil in France weighed on the mood.
German stocks outperformed broader European markets this year with a near 19% jump, while political instability and concerns about a widening fiscal deficit weighed on France's CAC 40, pushing it down 3.1% year-to-date.
The UK's FTSE 100 looked set for a near 5% rise in 2024, its fourth consecutive year of gains.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Mrigank Dhaniwala)
Key Takeaways
- •European stocks are set for their worst quarterly performance since 2022.
- •Uncertainty in monetary policy and political shifts affect market rallies.
- •STOXX 600 remains flat as trading volumes thin in the final session of 2024.
- •High valuations and climbing Treasury yields contribute to risk-off sentiment.
- •German stocks outperform, while France's CAC 40 struggles with political instability.
Frequently Asked Questions about European stocks set for worst quarterly showing since 2022
1What is the main topic?
The article discusses the poor quarterly performance of European stocks in 2024 due to monetary policy and political uncertainties.
2Why are European stocks struggling?
High valuations, climbing Treasury yields, and political shifts have contributed to a risk-off sentiment affecting European stocks.
3How did German stocks perform?
German stocks outperformed broader European markets with a near 19% jump in 2024.
