European stocks experienced a modest uptick in the subdued post-Christmas trading environment, maintaining proximity to their highest levels since January 2022. On the first day of trading after the Christmas break, the Stoxx 600 Index closed 0.2% higher on Wednesday. Notably, real estate and technology stocks took the lead in this incremental rise.
Among individual stock movements, AstraZeneca Plc saw an increase following its agreement to acquire the Chinese cell therapy developer, Gracell Biotechnologies Inc. Meanwhile, German chemical giant Bayer AG secured gains after winning a trial in a US lawsuit related to its Roundup herbicide. Additionally, mining giant Anglo American Plc experienced a boost as reports surfaced regarding its plan to sell a stake in Britain’s $9 billion Woodsmith fertilizer mine.
Despite the positive momentum, trading volumes remained light, with only three trading days left in the year. The European stock market has witnessed a robust rally over the last two months, positioning the main benchmark to conclude 2023 with an impressive gain of over 12%.
However, a potential pullback seems to be on the horizon. A recent BofA poll revealed that almost two-thirds of European investors expect a near-term decline in stocks, signaling caution after the sharp rally since late October.
For more insights into equity markets, stay tuned for the following advisories:
- ADVISORY: Taking Stock Europe Will Resume on Jan. 3
- ADVISORY: M&A Watch Europe Will Resume on Jan. 2
In the US stock market, futures show minimal changes, with notable movements observed in Coherus Bio and AMD.
