European markets close higher for eighth straight session; luxury stocks rise on China stimulus hopes

This was CNBC’s live blog covering European markets.

European stocks continued their positive run on Monday, as investors weighed Chinese stimulus measures and geopolitical turmoil.

The pan-European Stoxx 600 closed higher for an eighth straight session, moving past earlier choppiness to record a 0.14% gain. It is the longest stretch in the green for the regional index since May.

China’s leaders on Monday vowed “more proactive” fiscal measures and “moderately” looser monetary policy for next year, moves which could boost domestic consumption.

The announcement buoyed European luxury stocks, with Gucci-owner Kering gaining around 4%.

Hong Kong stocks rose around 3%, though Asia-Pacific markets were otherwise mixed overnight. South Korea’s Kospi stock index fell over 2% after President Yoon Suk Yeol survived an impeachment vote over the weekend.

Shares of BP jumped 5% as the company announced a merger of its offshore wind business with Japanese power company JERA in a new joint-owned firm. BP is thought to be prioritizing its fossil fuel operations as it seeks to boost profitability.

Traders were meanwhile assessing geopolitical upheaval in the Middle East after the ousting of Syrian President Bashar al-Assad over the weekend. Western leaders have greeted the overthrow of the Assad dynasty by rebel forces with caution, fearing a power vacuum and more instability in the region.  

Stateside, U.S. stock markets were mostly lower in morning deals, dragged down by tech darling Nvidia. A regulator in China on Monday said it was investigating the chipmaker over possible violations of the country’s antimonopoly law.

Investors are awaiting November’s U.S. consumer price index, due out Wednesday, which is expected to show a slight uptick in pricing pressures.

— CNBC’s Sarah Min contributed to this market summary

Europe stocks close higher

Europe’s Stoxx 600 index closed higher for an eighth straight session on Monday, gaining 0.14%.

France’s CAC 40 index rose 0.72% despite political uncertainty in the country, while the U.K.’s FTSE 100 was up 0.52%. Germany’s DAX bucked the trend to fall 0.19%.

— Jenni Reid

BP shares pop 5% after offshore wind joint venture announcement

BP shares were 5.2% higher at 3:48 p.m. London time, putting the stock on course for its best single-session performance since February.

The company earlier in the day announced it would combine its offshore wind business with that of Japan’s JERA, creating an equally-owned joint venture it said would become “one of the largest global offshore wind developers, owners and operators.”

The business will be called JERA Nex bp.

“This will be a very strong vehicle to grow into an electrifying world, while maintaining a capital-light model for our shareholders,” BP CEO Murray Auchincloss said in a statement.

Auchincloss is seeking to strengthen BP profitability and reduce debt amid the energy transition. Reuters reported Friday that the company was seeking buyers for a significant stake in its U.S. natural gas pipeline network. BP declined to comment on the report to CNBC.

Elsewhere in the industry, oil major Shell last week said it would partner with Norway’s Equinor to combine their British offshore oil and gas assets in a jointly-owned energy company.

— Jenni Reid

Nasdaq opens lower following Nvidia investigation announcement

The Nasdaq Composite fell 0.3% on Monday morning.

The S&P 500 also fell 0.2% in morning trading, while the Dow Jones Industrial Average gained 47 points, or 0.1%.

— Sean Conlon

Volkswagen workers strike again as negotiations over wage agreements, plant closures continue

Volkswagen workers went on strike for several hours of their shifts again Monday while negotiations about changes to wage agreements and potential plant closures entered their fourth round.

Workers staged four-hour walkouts during various shifts, an increase from the two-hour warning strikes they undertook last week. Over 98,000 workers took part in the first round of strikes on Dec. 2, the union IG Metall said at the time.

The works council and union have repeatedly warned of further escalation of strikes should Volkswagen’s management not budge in negotiations.

Several rounds of talks — between the works council and union on one side, and the business on the other — have failed, with the works council and union saying they would not accept wage cuts or plant closures. A counter-proposal from the union was meanwhile brushed off by senior leaders at Volkswagen.

Volkswagen shares were last around 1% higher at around 1 p.m. London time.

— Sophie Kiderlin

Nvidia shares slid following Chinese antimonopoly investigation announcement

Nvidia shares dropped more than 2% in Monday premarket trading after a Chinese regulator said the chipmaker was being investigated for potential violations of antimonopoly law.

The Chinese government said on Monday that its State Administration for Market Regulation launched a probe into Nvidia. It comes amid a big year for shares, with the stock up more than 187% in 2024.

— Alex Harring, Samantha Subin

A lot of bets are on AI infrastructure: Hoxton Ventures

European stocks trade around the flatline, paring back earlier gains

The pan-European Stoxx 600 traded around the flatline by around 10:30 a.m. London time after starting the day in positive territory, rising as much as 0.5% soon after trading began.

It was last down 0.01%. Construction and materials stocks fell around 0.6%, while insurance and food and beverage stocks both slipped around 0.5%.

— Sophie Kiderlin

Mining stocks surge

Mining stocks in Europe surged 3% on Monday, with the sector adding 2.97% by 10:20 a.m. London time.

Rio Tinto, Antofagasta and SSAB led the gains, each jumping more than 3%.

Shares of firms in the sector moved upward on the back of China pledging to loosen monetary policy in 2025 and take a “more proactive” approach to its fiscal policy.

Swedish mining group Boliden was also boosted 2.8% after announcing it had agreed to buy two mines in Portugal and Sweden for $1.3 billion, plus contingent payments of up to $150 million.

CEO Mikael Staffas said in a statement on Monday that the zinc and copper mines were “cash flow generative” and would create value both in the short and the long term.

— Chloe Taylor

HelloFresh falls 6% after report on investigation into child labor allegations

Shares in HelloFresh tumbled Monday after a media report said that the U.S. Department of Labor is investigating the meal kit giant following allegations of child labor at a facility in Illinois.

ABC News reported late on Friday that the department was looking into allegations that earlier this year migrant children worked in packaging and cooking at a Factor facility. HelloFresh acquired Factor in 2020.

HelloFresh on Monday in a statement told CNBC it was “deeply troubled to learn of the allegations made against a former temporary staffing agency, Midway Staffing.”

Midway Staffing was not immediately reachable by CNBC over the phone.

“As soon as we learned of these allegations, we immediately terminated the relationship. HelloFresh and Factor have strict protocols in place to ensure all vendors follow our robust global ethics and compliance policies. We have zero tolerance for any form of child labor, and we have taken action to ensure no minors perform work in or have access to our facilities,” HelloFresh added.

Shares in HelloFresh were last down around 6.5% at around 10:00 a.m. London time.

— Sophie Kiderlin

Luxury stocks rise as China vows “more proactive” fiscal measures, “moderately” looser monetary policy

Luxury stocks were on the rise Monday as trading kicked off after China’s leaders suggested “more proactive” fiscal measures and “moderately” looser monetary policy could come next year. Such moves could boost domestic consumption.

Gucci-owner Kering was up around 4.2% at 8:26 a.m. London time, while shares of Christian Dior and Moncler added around 2.9% each.

Various other luxury brands, including Burberry and LVMH, also rose more than 2%.

Luxury stocks have been sensitive to news about the Chinese economy in recent months. Chinese consumers have historically been big luxury spenders, but several global brands have noted a slowdown in demand recently.

— Sophie Kiderlin

European markets open higher

European markets opened higher on Monday, kicking off the new trading week on a positive note.

The pan-European Stoxx 600 was up 0.33% at 8:07 a.m. London time, with almost all sectors trading in the green. Mining stocks led gains, adding 1.5%.

Major indexes across the region also rose, with France’s CAC 40 adding around 0.8%, the U.K.’s FTSE 100 adding 0.33% and Germany’s DAX rising 0.15%.

— Sophie Kiderlin

UK business confidence falls to lowest level in almost two years

Business confidence in the U.K. fell to its lowest level since January 2023 in November, according to a report by business advisory and accountancy firm BDO released Monday.

BDO’s Optimism Index fell 5.81 points to 93.49 in November, the company said, noting that this also marked the biggest month-on-month decline since August 2021.

Rising costs, falling orders and continuing labour market challenges were cited by BDO as key issues currently facing businesses.

“This month’s decline in confidence is likely to reflect businesses’ immediate reaction to announcements in the Autumn Budget,” BDO added.

— Sophie Kiderlin

China consumer prices climb less than expected as economy slows amid trade war worries

China’s consumer prices rose less-than-expected in November, climbing 0.2% from a year ago, according to data from the National Bureau of Statistics released Monday.

Analysts polled by Reuters had expected a slight pickup in consumer prices to 0.5% in November from a year ago, versus 0.3% in October.

China’s producer price index declined for the 26th month. Producer inflation fell by 2.5% year on year in November, less than the estimated 2.8% decline as per the Reuters poll. 

The persistent near-zero inflation shows that China is still grappling with sluggish domestic demand and deflation at the wholesale level. This is in spite of Beijing’s slate of stimulus efforts since September which has included interest rate cuts, support for the stock and property markets as well as efforts to boost bank lending.

Read the full story here.

— Lee Ying Shan

CNBC Pro: Five global stocks the pros are buying before the start of 2025

2024 has seen some massive stock rallies, as investor interest in themes such as AI has shown little sign of waning.

As the year-end nears, CNBC Pro asked three fund managers what global stocks they are buying in the lead-up to 2025, as they attempt to get ahead of the curve.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets: Here are the opening calls

European markets are expected to open in flat to lower territory Monday.

The U.K.’s FTSE 100 index is expected to open 5 points lower at 8,299, Germany’s DAX down 7 points at 20,377, France’s CAC up 1 point at 7,430 and Italy’s FTSE MIB down 45 points at 34,713, according to data from IG.

There are no major earnings or data releases in Europe Monday.

— Holly Ellyatt