Finance
European equities muted as tech valuation concerns linger; UK markets outperform
Published by Global Banking and Finance Review
Posted on December 17, 2025
3 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 17, 2025
3 min readLast updated: January 20, 2026
European equities were steady as tech concerns lingered, but UK markets outperformed with rate cut bets firming after inflation data.
By Ragini Mathur and Twesha Dikshit
Dec 17 (Reuters) - European shares were little changed on Wednesday with losses in technology stocks offsetting strong performance from basic resources amid lingering concerns over sky-high, AI-fuelled tech valuations.
UK markets, meanwhile, advanced after inflation data firmed rate cut bets.
The pan-European STOXX 600 closed flat at 579.84, after trading close to record highs during the day.
Major regional bourses were mixed, with the UK's FTSE 100 adding 0.9% while Germany's DAX and France's CAC 40 dipped 0.5% and 0.3%, respectively.
British consumer price inflation fell unexpectedly sharply in November, data showed, prompting investors to add to bets for an interest rate cut on Thursday.
Banks were a big boost to the STOXX 600, up 1% and trading close to levels last seen in 2008. London's HSBC added 2.7% after hitting a record high earlier with traders pointing to a broker rating upgrade on the stock.
"For the next year, we remain constructive on equities globally. We have diversified our portfolio, because we think it's important not to be too concentrated on U.S. tech," said Amelie Derambure, senior multi-asset portfolio manager at Amundi.
"Monetary policy is going to be supportive or neutral, we don't believe there will be hikes in most developed countries ... and we expect a tailwind coming from the fiscal support in Germany."
Mining stocks were the biggest gainers, rising 1.1% after silver prices hit a record high and gold bullion prices also inched up. [GOL/]
Commodity-linked stocks traded higher, with energy firms tracking a rise in oil prices after the U.S. ordered a blockade on sanctioned oil vessels in Venezuela. Shell and BP both gained.
Tech shares fell 1.7% with semiconductor companies ASML Holdings, BESI and ASMI in the red.
Construction and materials and automobiles also came under pressure.
The STOXX 600 has rallied nearly 15% this year, aided by falling interest rates across the continent and global investors diversifying away from premium-valued U.S. tech stocks.
Several monetary policy decisions are on the radar this week, including those by the European Central Bank (ECB), Sweden's Riksbank, Bank of England, and Norway's Norges Bank.
Among individual stocks, London-based Bunzl fell 2% after the business supplies distributor forecast a slight year-on-year drop in its 2026 operating margin.
Serco topped the STOXX 600 with a 7.4% gain after the outsourcing firm forecast profit ahead of analyst expectations for this year and next.
(Reporting by Twesha Dikshit, Utkarsh Hathi, Ragini Mathur and Purvi Agarwal; Editing by Sonia Cheema, Ronojoy Mazumdar and Joe Bavier)
Equity refers to the ownership value in an asset or company, representing the shareholders' stake after all liabilities have been deducted. It is a key concept in finance and investing.
Monetary policy is the process by which a central bank manages the supply of money and interest rates to achieve specific economic objectives, such as controlling inflation and stabilizing currency.
Valuations are assessments of the worth or value of an asset, company, or investment, often determined through various financial metrics and analysis methods.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually and can impact economic stability.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives, facilitating capital flow and investment.
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