A French flag is seen on the Place de la Republique as people celebrate after the Nouveau Front Populaire, an alliance of left wing parties including the far-left wing party, La France Insoumise came in first on July 07, 2024 in Paris, France.
This was CNBC's live blog covering European markets.
LONDON — European stocks closed higher on Wednesday afternoon, as investors braced for an upcoming no-confidence vote in France's parliament, the National Assembly.
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The pan-European Stoxx 600 was provisionally up 0.38% as trading ended.
Elsewhere, the French CAC 40 index was 0.66% higher as investors awaited the latest developments in a week of political upheaval in France.
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French lawmakers are expected to vote on the future of Prime Minister Michel Barnier's minority government this evening, with the motions coming after Barnier used special constitutional powers on Monday to pass a contested budget bill without a parliamentary vote.
The right-wing National Rally party has said it will support the motion brought by its left-wing rivals, but will also support its own motion of no-confidence. It's highly likely that Barnier's government will collapse after the vote.
Elsewhere, Bank of England Governor Andrew Bailey hinted on Wednesday that the central bank was poised to carry out four interest rate cuts in 2025.
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In other news, political upheaval in South Korea is being closely-watched by investors in the Asia-Pacific region. Overnight, South Korean markets opened lower after President Yoon Suk Yeol's surprise decision to impose and then lift a martial law decree within hours.
South Korea's parliament on Thursday formally introduced a motion to impeach Yoon, which should be voted within 72 hours if introduced, according to Reuters. Yoon's chief of staff and senior secretaries have reportedly offered to resign en masse.
— CNBC's Dylan Butts contributed to this market summary.
European markets close higher
European markets rose on Wednesday, with the Stoxx 600 — which is comprised of stocks from across the region — provisionally adding 0.38% by the end of the day.
Retail stocks led gains, up 2.2%, while oil and gas stocks fell 0.74%.
Major regional bourses were meanwhile mixed, with the U.K.'s FTSE dipping 0.28%, while the French CAC 40 added 0.66% and Germany's DAX closed 1% higher after trading at record highs.
— Sophie Kiderlin
China more prepared for U.S. tariffs than in 2018, says Genco CEO
German DAX rises 1%, trading around record highs
Germany's DAX rose around 1% by Wednesday afternoon, trading near record highs as it held firmly above the 20,000 points mark it crossed for the first time on Tuesday.
At 3:06 p.m. London time, the DAX was up 0.97%. The index was on track for its fifth straight day of gains.
Year-to-date the German index has added over 20%, according to LSEG data.
— Sophie Kiderlin
Stocks open higher on Wednesday
The major averages opened higher to start Wednesday's trading session.
The Dow Jones Industrial Average surged 204 points, or 0.4%. The S&P 500 and Nasdaq Composite respectively added 0.3% and 0.6%.
— Lisa Kailai Han
Bank of England’s Bailey hints at more rate cuts
In a pre-recorded interview that aired during a Financial Times event on Wednesday, Bank of England Governor Andrew Bailey suggested multiple rate cuts were on the cards for 2025.
Asked whether the central bank would be poised to carry out four quarter-point cuts over the coming year, if its projections of "a little bit of [inflation] persistence" come to fruition, Bailey responded, "Exactly."
The Bank of England cut interest rates by 25 basis points in November, bringing its key rate down to 4.75%.
— Chloe Taylor
Novo Nordisk shares dip after Eli Lilly says its obesity drug causes greater weight loss than rival
Novo Nordisk shares dipped midday on Wednesday after Eli Lilly said its obesity drug Zepbound led to more weight loss than its Danish rival.
The findings suggest Eli Lilly's Zepbound may be a superior treatment for weight loss, helping obese or overweight patients lose 20.2% of their body weight — or roughly 50 pounds — on average after 72 weeks in the phase three trial. Meanwhile, Novo Nordisk's Wegovy helped people lose 13.7% of their weight, or about 33 pounds, on average after the same time period.
Novo Nordisk shares started the day in positive territory but were trading 0.6% lower as of 12:10 p.m. London time.
- April Roach and Annika Kim Constantino
China more prepared for U.S. tariffs than in 2018, says Genco CEO
China is more prepared for U.S. tariffs than it was in 2018, Genco Shipping CEO John Wobensmith told CNBC's "Squawk Box Europe" Wednesday.
Wobensmith said that, while there is no certainty on what President-elect Donald Trump's tariff policy will be, China is already making preparations.
"Certainly the Chinese have been stockpiling on the soy bean side, they have increased, or augmented their relationship with Brazil. So Brazil is now the largest soy bean exporter and China has definitely been developing those relationships," Wobensmith said.
- April Roach
OECD cuts Germany's 2025 economic growth outlook
The OECD on Wednesday cut the German economic growth outlook for 2025 to 0.7% and said it was expecting the country's gross domestic product to stagnate this year.
In its interim economic outlook report published in September, the OECD had forecast 0.1% growth in 2024 and 1% in 2025, which was already a reduction from the organisation's report in May.
The additional cut announced Wednesday makes Germany the country with the lowest growth forecast among the OECD member countries for next year.
Tightening fiscal policy and political uncertainty were key factors for the growth forecast reduction, the OECD said, while a pick-up of private investment and recovering exports will be supportive factors.
German GDP has been hovering around the flatline this year, adding 0.1% in the third quarter from the previous three months.
— Sophie Kiderlin
Latest euro zone business data is a 'reprieve' for ECB policymakers, analyst says
The latest euro zone business data offers some "slight reprieve" to European Central Bank policymakers, according to Validus Risk Management Analyst Harry Woolman.
The HCOB's composite Purchasing Managers' Index (PMI), compiled by S&P Global, came in at 48.3 in November, data compiled by S&P Global showed.
The data shows the euro area economy fell back into contraction in November as business activity levels decreased at the fastest pace since January due to a decline in services output, S&P Global said.
However, at 48.3, the figures "surprised to the upside" against a consensus forecast of 48.1, Woolman said Wednesday.
"The move offers some slight reprieve to ECB policymakers, who had been facing mounting pressure to deliver a 50bps cut on 12th December. Current market pricing assigns a 52% probability of a larger move, down from 58% last week," Woolman noted.
He added that "the data does little to assuage concerns about economic underperformance on the continent, with the headline figure remaining below the key 50.0 threshold that separates economic expansion from contraction."
- April Roach
Vestas Wind sinks 7% after CFO plans to step down
Vestas Wind fell to the bottom of the Stoxx 600 Wednesday, after the wind turbine maker announced its Chief Financial Officer Hans Martin Smith will step down by the end of this year.
Smith is stepping down from position of CFO after more than 20 years at the company, the Danish firm said in a statement.
Vestas added that CFO responsibilities will be handled by Senior Vice President Rasmus Gram until a replacement is found. The company has already started the process.
Shares were 6.6% lower as of 9:47 a.m. London time.
- April Roach
Stellantis shares climb 1% after report that the Jeep-maker chose Apple's Maestri as new CEO
Milan-listed shares of Stellantis added 0.72% at 09:08 a.m. London time, following a report that the automaker had tapped outgoing Apple Chief Financial Officer Luca Maestri as its new CEO.
A person with knowledge of the matter denied the allegation.
The leadership of the world's fourth-largest carmaker crumbled at the end of last week, as CEO Carlos Tavares unexpectedly resigned amid "different views" between the executive and the board of directors. He had been set to retire at the end of his contract in early 2026.
Stellantis has been battling a spate of challenges in recent months, from supply chain disruptions to tepid demand for electric vehicles.
— Ruxandra Iordache
Campari shares rise 5% as group names new CEO
Shares of Campari popped 4.66% at 08:45 a.m. London time, after the Italian spirits group named William Grant & Sons leader Simon Hunt as its new CEO.
He will succeed Matteo Fantacchiotti, who stepped down in September after only five months in the post.
Hunt's appointment pends an ad-hoc general meeting on Jan. 15.
He will take over from ad-interim co-CEOs, Paolo Marchesini and Fabio Di Fede, who serve as chief financial and operating officer and chief legal and M&A officer, respectively.
In a Wednesday statement, Campari group Chairman Luca Garavoglia said Hunt's "proven and extensive industry experience and leadership in building and scaling premium and luxury brands on a Page 2 of 2 global scale will be instrumental as he leads Campari Group through its next phase of growth."
— Ruxandra Iordache
Volvo shares up 2.8% as carmaker’s sales jump
Shares of Swedish carmaker Volvo jumped 2.8% by 8:35 a.m. on Wednesday, after the company said its global sales were up 5% year-on-year in November.
Sales of electrified models grew 40% on an annual basis, the firm said, with its fully electric and hybrid models accounting for 48% of all cars sold last month.
— Chloe Taylor
South Korea’s president will likely soon be replaced, analyst predicts
South Korean President Yoon Suk Yeol's days in office are likely numbered, according to Jeremy Chan, a senior analyst at Eurasia Group.
Speaking to CNBC's "Squawk Box Europe" on Wednesday, Chan said the "optics are not great" after the political upheaval seen in South Korea following Yoon's unexpected imposition of martial law on Tuesday —a move that was swiftly reversed but led to protests and lawmakers seeking to impeach the president.
The chaos will likely lead to Yoon's early resignation from office, if not removal through impeachment, Chan speculated, and "probably the election a few months hence of a very different figure in Lee Jae-myung, the leader of the opposition party."
— Chloe Taylor
South Korean stocks nosedive
South Korea's financial markets took a downward turn on Wednesday, as an outbreak of political turmoil left investors uncertain about the country's prospects.
A coalition of South Korean lawmakers plans to begin impeachment proceedings against President Yoon Suk Yeoul, after he unexpectedly imposed martial law — a decision that triggered protests in Seoul, before being reversed in the country's parliament within a matter of hours.
The South Korean Kospi index shed 1.4% by 6:42 a.m. London time, while the Kosdaq was trading around 2% lower. The Korean won erased some of its losses from Tuesday, with the U.S. dollar standing at around 1,410.31 won during early trades.
— Chloe Taylor
CNBC Pro: 'We really like the U.S.' Julius Baer portfolio manager says. Here's where she sees opportunity
At a time when investors are mixed on the U.S. market, one portfolio manager remains optimistic and sees reason to stay invested over the longer-term.
"We really like the U.S. Now that the election result is clear and behind us, we can reasonably assume a higher growth rate in the U.S., and that's probably going to lead to an end of year rally," Aneka Beneby, portfolio manager at Julius Baer International said, revealing segments she sees opportunities in.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
CNBC Pro: How are investors trading France’s political chaos?
The French government is on the brink of collapse this week and investors are gearing up for a volatile week of trading, with some eyeing opportunities amid the chaos.
Investors have shared how they're trading French bonds and laid out what could happen if the government falls, and other scenarios.
CNBC Pro subscribers can read more here.
— Ganesh Rao
European markets: Here are the opening calls
European markets are expected to open higher Tuesday.
The U.K.'s FTSE 100 index is expected to open 18 points higher at 8,322, Germany's DAX up 15 points at 19,922, France's CAC up 29 points at 7,245 and Italy's FTSE MIB up 43 points at 33,601, according to data from IG.
Data releases Tuesday include U.K. retail sales and Spanish unemployment figures.
— Holly Ellyatt
