Carlos Tavares, chief executive officer of Stellantis NV, speaks during a news conference at the Fiat automobile manufacturing plant in Kragujevac, Serbia, on Monday, July 22, 2024.
This is CNBC's live blog covering European markets.
LONDON — European markets were higher Monday, as investors assessed the global economic and interest rate outlook heading into the final trading month of the year.
The regional Stoxx 600 rebounded from an earlier to decline to trade 0.59% higher by 12:19 p.m. London time, after the index closed out November with its strongest monthly performance since August. France's CAC 40 index moved from a loss to a 0.16% gain in the early afternoon, as investors monitor negotiations over the country's budget which threaten to topple the government.
Shares of Jeep-maker Stellantis fell 9% after CEO Carlos Tavares announced his immediate resignation over the weekend, citing "different views" between the executive and the board of directors. The European-American company has been struggling with declining sales and high inventories in the U.S.
Get top local stories in Philly delivered to you every morning. Sign up for NBC Philadelphia's News Headlines newsletter.
Data releases showed a deterioration in manufacturing sector activity in both the euro zone and the U.K., while the unemployment rate in the European Union remained steady in October.
The latest tariff threats from U.S. President-elect Donald Trump are also in focus, as the world gears up for a potential escalation in trade tensions in 2025.
"No one has the information we need to actually know how to trade these markets as we get into next year... But I think overall, you're putting in place a policy of protectionism. That means America first," Richard Kelly, head of global strategy at TD Securities, told CNBC's "Squawk Box Europe" on Monday.
Money Report
"When you look on the macro side, what we have the biggest conviction around is that U.S. inflation will be higher than what was expected, and global growth will be lower than what was expected," Kelly said, adding that the question now was whether central banks in Europe would consequently speed up monetary easing while the Federal Reserve slows it down.
Asia-Pacific markets traded slightly higher overnight as the region kickstarted a data-heavy week. Over the weekend, China released its official purchasing managers' index reading for November, which came in at the highest level since April.
U.S. stock futures were slightly lower, coming off a winning week and month for stocks in November which centered on a postelection rally after President-elect Donald Trump's win.
Delivery Hero down 12% as Spanish riders set to gain employee benefits
Germany's Delivery Hero was one of the worst performers on the Stoxx 600 index through morning trade, declining 11.6% after the company announced that delivery riders at its Spanish subsidiary would be reclassified from freelancers to employees.
The move comes after alleged violations of labor laws by the Glovo brand over which it has previously been fined.
The operation model change is expected to have a negative 100-million-euro ($105.3 million) hit on adjusted earnings at the unit in the full-year 2025, the company said, adding that it would "avoid further legal uncertainties leading to an increase of contingencies" with the change.
The business will increase its overall contingency provision from 330-550 million euros to 440-770 million euros in its full-year results to cover "social security contributions, fines, VAT claims and other payment charges covering the period until the end of 2024" related to Glovo.
Glovo is nonetheless expected to generate positive adjusted income for the full-year 2025, Delivery Hero said, as it reconfirmed its full-year guidance.
— Jenni Reid
Strikes underway at Volkswagen plants across Germany as wage conflict escalates
Volkswagen workers across Germany stopped work on Monday as the conflict between the German automotive giant and its employees over changes to labor agreements and potential factory closures escalated.
Nine of Volkswagen's car and component factories in Germany were affected by the so-called warning strikes, with work either being halted temporarily for demonstrations or shifts being cut short by workers.
Volkswagen shares were last 0.07% higher at 11:20 a.m. London time.
— Sophie Kiderlin
Euro zone unemployment holds at 6.3%
Unemployment in the euro area was steady month-on-month at 6.3% in October, data from statistics agency Eurostat showed, in-line with a Reuters forecast from a poll of economists.
The rate in the wider European Union also held firm, at 5.9%.
"October was yet another month when euro zone unemployment defied the skeptics, this time by confirming that the previous decline to 6.3% was not a fluke that will be reversed," Moody's Analytics Senior Economist Kamil Kovar said in a note.
"Instead, the continued downward trend in the unemployment rate reflects structural declines in unemployment in Southern Europe that are dominating cyclical increases in Germany and elsewhere. We continue to believe that that the unemployment rate is more likely to tend lower, not higher, in coming quarters."
However, Andrew Kenningham, chief Europe economist at Capital Economics, said he expects the bloc's labor market to weaken amid a poor economic environment.
"Looking ahead, business surveys such as the PMI suggest that employment is likely to be unchanged in the coming months whereas the labor force is continuing to increase," Kenningham said.
"As a result, the euro zone unemployment rate will probably begin to rise next year, supporting the case for looser monetary policy."
— Jenni Reid
'Terrible': Manufacturing downturn worsens in euro zone and UK, PMIs show
The manufacturing sectors in both the euro zone and U.K. showed more weakness in November, according to the latest purchasing managers' index figures from S&P Global.
The euro area manufacturing PMI showed a faster deterioration across new factory orders, production, purchasing activity and inventories. Employment declined at its sharpest rate since August 2020, particularly in Germany and Austria, while output prices were "discounted more aggressively" in light of sustained demand weakness.
"These numbers look terrible. It's like the eurozone's manufacturing recession is never going to end. As new orders fell fast and at an accelerated pace, there's no sign of a recovery anytime soon," said Cyrus de la Rubia, chief economist at the survey's co-producer Hamburg Commercial Bank.
In the U.K. meanwhile, manufacturing output fell for the first time in seven months as output, new orders, employment and stocks of purchases all worsened.
— Jenni Reid
Euro slides with French government on brink
The euro tumbled 0.72% against the U.S. dollar, trading at $1.0497 at 8:40 a.m. in London, as traders monitored political volatility in France.
The odds that the fragile government led by Michel Barnier will be toppled in a no-confidence vote by the far-right and a left-wing coalition appeared higher Monday as negotiations over the budget reportedly hit a wall over the weekend.
Interest rate expectations for the U.S. Federal Reserve and European Central Bank were also swaying foreign exchange markets, with the greenback broadly higher after President-elect Donald Trump extended his recent tariff threats to the whole of the so-called BRIC alliance. Sweeping tariffs are expected to spur the Fed to act more cautiously on interest rate cuts on the possibility of higher U.S. inflation.
Markets meanwhile priced in a slightly higher chance of a 50 basis point rate cut from the ECB at its December meeting, following a note from JPMorgan economist Greg Fuzesi on Friday suggesting the move could be warranted in light of weak business activity indicators and slowing services inflation.
A 25 basis point cut is still seen as the most likely outcome after euro zone inflation rose to 2.3% in November.
— Jenni Reid
Europe stocks open slightly lower
European stocks opened lower Monday, with the Stoxx 600 index down 0.1% in early deals.
France's CAC 40 index fell 0.77% as investors monitored ongoing political volatility in the country. Germany's DAX was down 0.15% while the U.K.'s FTSE 100 was flat.
— Jenni Reid
UK house prices rise well ahead of expectations in November
U.K. house prices climbed 1.2% month-on-month in November, according to lender Nationwide, significantly ahead of the 0.2% gain forecast in a Reuters poll of economists.
Annual house price growth jumped to 3.7% from 2.4% in October, marking the highest rate for two years.
"The acceleration in house price growth is surprising, since affordability remains stretched by historic standards, with house prices still high relative to average incomes and interest rates well above pre-Covid levels," Robert Gardner, Nationwide chief economist, said in a statement.
Low unemployment and increased wage growth along with solid household balance sheets are likely to have played a role in supporting the U.K. housing market this year, Gardner said, with debt levels at their lowest levels relative to household income since the mid-2000s.
The coming months are likely to see a spike in activity as buyers look to avoid an upcoming rise in stamp duty, a tax on home purchases, he added.
— Jenni Reid
Stellantis CEO resigns unexpectedly
The chief executive of European-American automaker Stellantis unexpectedly resigned on Sunday, citing "different views" between the executive and the board of directors.
Carlos Tavares had been due to retire in 2026.
The company said it expected to find his replacement during the first half of next year and would appoint a new interim executive committee led by Chairman John Elkann.
Stellantis, which produces brands including Jeep, Dodge, Fiat and Peugeot, has been struggling with waning sales, high North American inventories and fierce Chinese competition amid the wider industry pivot to electric vehicles.
Tavares led the firm through its merger with Fiat Chrysler Automobiles and PSA Groupe in 2021 and had prioritized a major cost-cutting program.
Jefferies analyst Philippe Houchois said in a note Sunday that his early and immediate departure left the group "without leadership at a time of critical decisions" on brand management to reverse market share loss and on excess industrial capacity in Europe and North America.
Houchois added that Stellantis still had "well-functioning governance and Board independence" and had recently confirmed its 2024 guidance, but noted that its troubles "continue to cast doubts about the global brand conglomerate business model."
— Jenni Reid, Michael Wayland
Caixin PMI: China’s factory activity expands again in November, beats forecasts
China's manufacturing activity continued to expand among smaller manufacturers in November, signaling that the country's recent stimulus efforts have already helped to lift certain sectors of its ailing economy, according to a private survey released Monday.
The Caixin/S&P Global manufacturing purchasing manager's index came in at 51.5, beating the median estimate of 50.5 in a Reuters poll. This also marks the second month in a row that the official reading has stayed above the key 50 level, which separates growth from contraction.
This private gauge comes after the official PMI data, released Saturday, also indicated that manufacturing activity in the country expanded to 50.3 in November from 50.1 in the previous month. The reading beat Reuters' expectations of 50.2.
Read the full story here.
— Lee Ying Shan
CNBC Pro: An Indian automaker unveiled 2 EVs priced $25,000. Analysts say it's a buy
One of India's largest automakers, unveiled two new electric vehicles recently that are priced competitively at around $25,000, challenging both domestic and international rivals in the growing Indian market.
Now, investment banks suggest there are upside risks for the stock if the company's new vehicles take off.
CNBC Pro subscribers can read more here.
— Ganesh Rao
No market corrections yet in 2024
There hasn't been a stock market correction, or a pullback of 10% or more, in the S&P 500 this year, according to Bespoke Investment Group.
Since 1928, the S&P 500 has averaged a correction once every 346 days, almost once a year, the research firm said. The market has been stronger in recent years, however, as half the yearly periods since 2000 haven't had such a pullback.
The S&P 500 is up more than 26% in 2024, on track for its best year since 2021.
— Yun Li
U.S. equities may near their peak before Trump’s inauguration, Jefferies strategist says
U.S. stocks have soared this month under the promises of more market deregulation under a second Trump administration. But in a Friday email, Jefferies strategist Christopher Wood hypothesized if the market would reach its peak before Trump's inauguration on Jan. 20.
"Financial markets can get very extreme at inflection points and it has to be wondered whether such a point is approaching," he wrote. "At a time when there is much talk about 'American exceptionalism,' it is worth noting that the S&P 500 price to sales ratio is almost back at a record high. America is also now 66.7% of the MSCI All Country World Index which is an all-time high."
Wood added that against this backdrop, institutional and retail investors alike were expressing "zero interest" in investing in ex-U.S. equities.
— Lisa Kailai Han
European markets: Here are the opening calls
European markets are expected to open lower Monday.
The U.K.'s FTSE 100 index is expected to open 2 points lower at 8,285, Germany's DAX down 19 points at 19,606, France's CAC down 41 points at 7,188 and Italy's FTSE MIB down 167 points at 33,275, according to data from IG.
Data releases include European manufacturing purchasing managers' index figures and Italian gross domestic product.
— Holly Ellyatt
