European stock markets closed higher on Monday, reflecting a positive sentiment as the Stoxx Europe rose by 0.94%. Germany's DAX experienced a notable climb of 1.53%, while the FTSE in London increased by 0.31%. France's CAC saw a significant surge of 2.24%, and the Swiss Market Index advanced by 0.58%, indicating a recovering environment for investors in the region. In a detailed analysis of economic performance, the seasonally adjusted HCOB Eurozone Composite PMI Output Index increased to 49.6 in December, up from 48.3 in November.
This figure, however, remains below the crucial 50-point threshold, which delineates contraction from expansion. Data compiled by S&P Global reveals that this marks the second consecutive month of economic contraction, signaling challenges in the manufacturing sector as responses from industry leaders suggest a cautious outlook. Turning to the UK, the seasonally adjusted S&P Global UK Services PMI experienced an uptick, reaching 51.1 in December, an increase from 50.8 in November.
While this increase indicates modest growth, it reflects what experts describe as 'a subdued end to 2024.' Furthermore, the average index reading for Q4 stands as the lowest recorded in a year, emphasizing the ongoing uncertainties within the UK's economic landscape. In Germany, economic indicators suggest a slight uptick in consumer prices, as the provisional consumer price index rose by 2.6% year-on-year in December, alongside a 0.4% increase from November figures.
Analysts have estimated the annual average inflation rate for 2024 to be about 2.2%, suggesting that German consumers face rising costs amidst an evolving economic environment. In corporate developments, UBS Group has taken a significant step by retaining independent ombudsman Neil Barofsky to probe into Nazi-linked accounts that were inherited from Credit Suisse.
This move aims to ensure transparency and accountability, reflecting UBS's commitment to ethical financial practices in the wake of its recent acquisitions. In a separate corporate announcement, HSBC has appointed Lisa McGeough as the chief executive officer for its US operations, marking a strategic push for the British financial services company to strengthen its leadership in one of its key markets..