Major European Markets Close Slightly Weak

(RTTNews) - The major European markets closed on a slightly weak note on Monday as investors mostly stayed cautious, looking ahead to the interest rate decision from the Federal Reserve this week.

The Bank of Japan, the Reserve Bank of Australia and the Bank of Canada are also scheduled to make their monetary policy announcements this week.

The pan European 600 edged down 0.07%. The U.K.'s FTSE 100 drifted down 0.23% and France's CAC 40 ended down by 0.08%, while Germany's DAX crept up 0.07%. Switzerland's SMI climbed 0.35%.

Among other markets in Europe, Czech Republic, Denmark, Netherlands, Russia and Sweden ended weak.

Finland, Greece, Iceland, Ireland, Norway, Poland, Spain and Turkiye closed higher, while Belgium and Portugal ended flat.

In the UK market, Babcock International, Scottish Mortgage, Polar Capital Technology Trust, Rolls-Royce Holdings, Prudential, Pershing Square Holding, IAG and Standard Chartered gained 1 to 2.7%.

Unilever slid 6.6% The consumer goods giant announced that it has completed the demerger of its ice cream business, now known as The Magnum Ice Cream Company (TMICC).

Barratt Redrow, JD Sports Fashion, Persimmon and Entain closed lower by 3 to 4%. Marks & Spencer, Berkeley Group Holdings, Land Securities, Burberry Group, Relx and Hikma Pharmaceuticals lost 2 to 2.7%.

In the German market, Bayer rallied more than 4.5%. Rheinmetall climbed up nearly 3.5%. Deutsche Bank, MTU Aero Engines, Commerzbank, Porsche Automobil Holding and Deutsche Boerse gained 1 to 1.5%.

Shares of Germany metals company Kloeckner and Co shares soared 25%. The company has confirmed it is in discussions regarding a potential voluntary takeover offer from U.S. metals processor Worthington Steel.

Car parts supplier Stabilus slid more than 6% after its profit fell in fiscal 2025, impacted by unfavorable market conditions, the global tariff conflict, and the higher pricing pressure in the automotive business.

Gea Group lost more than 5%. Vonovia closed nearly 5% down. Symrise, Brenntag, Zalando, Beiersdorf, Adidas and SAP also ended sharply lower.

In the French market, L'Oreal lost more than 2%. The company has strengthened its partnership with Galderma by acquiring an additional 10% stake. It alread owned a 10% stake in the Swiss dermatalogy firm.

Edenred lost about 4.7%. Sanofi, Pernod Ricard, Saint Gobain, Eurofins Scientific, Hermes International, Bureau Veritas, Kering, Stellantis, Renault, Air Liquide and LVMH also closed notably lower.

Unibail Rodamco, Societe Generale, Thales, BNP Paribas, Legrand, Engie and Safran gained 1 to 2%.

In economic news, a survey by the Recruitment & Employment Confederation and KPMG showed starting pay for permanent staff rose at the fastest pace in five months, even as hiring slowed and jobseekers increased, highlighting persistent wage pressures.

Eurozone investor sentiment improved at the end of the year but the negative reading suggests that the economy remains in the phase of stagnation, survey results from the behavioral research institute Sentix showed on Monday.

The investor confidence index rose to -6.2 in December from -7.4 in November. The reading came in line with expectations.

Sentix observed that the currency bloc is finding it difficult to see the global momentum perceived by the survey participants for almost all other regions.

The current situation index rose to -16.5 in December from -17.5 in the prior month. Similarly, the expectations indicator posted 4.8, up from 3.3 a month ago.

Dtat from Destatis showed Germany's industrial output logged a monthly growth of 1.8% in October. Economists were expecting the increase to ease sharply to 0.2% from a revised 1.1% rise posted in September.

In three months to October, industrial production was 1.5% lower than in the previous three months.

On a yearly basis, industrial production gained 0.8%, in contrast to the 1.4% decrease in September.

Excluding energy and construction, industrial production grew 1.5% from September and was down 0.1% from the previous year.