European markets closed higher before Christmas, with DAX outperforming in 2024 By Investing.com

Investing.com — European stock markets closed higher in low holiday-impacted volumes Tuesday. 

At 11:30 ET (16:30 GMT), the UK’s was up 0.4%, and rose over 0.1%, while was closed. 

Most European markets closed early on Tuesday and remain closed Wednesday for Christmas.

ECB set to cut rates further in 2025

The DAX has outperformed the major indices so far in 2024, gaining over 18%, while the FTSE 100 has risen just 5% and political turmoil has dragged the CAC 40 over 3% lower.

The European Central Bank lowered its key rate earlier this month for the fourth time this year and is likely to cut interest rates further as 2025 progresses.

ECB President Christine Lagarde and the bank’s most influential policy hawk, Isabel Schnabel, cemented market bets on further gradual reductions in borrowing costs in the eurozone as the economy stutters and fears about high inflation fade.

“If the incoming data continue to confirm our baseline, the direction of travel is clear and we expect to lower interest rates further,” Lagarde said in a speech in Vilnius.

Inflation in the euro zone was 2.3% last month and the ECB expects it to settle at its 2% target next year after hitting double digits in the wake of Russia’s full-scale invasion of Ukraine in 2022.

ECB set to cut rates further in 2025

There’s little in the way of major corporate news Tuesday, but home construction company Vistry Group (LON:) revised its expected adjusted profit before tax for FY24 to approximately £250 million, down from its earlier guidance of £300 million. 

Additionally, health care company Kooth (LON:) has secured a $1.45 million pilot contract with the State of New Jersey to provide mental health support to 50,000 students aged 13-18 through its Soluna platform. 

Oil prices firm in thin trading

Oil prices rose on Tuesday within a narrow range as traders navigated concerns about a potential supply glut and weakened demand in 2025. 

At 11:30 ET, futures gained 1.4% to $73.3 per barrel, while West Texas Intermediate futures rose 1.6% to $70.4 per barrel.