FX.co ★ European Stocks Close Broadly Higher

European stocks closed mostly lower on Wednesday amid persistent political uncertainty in France and ongoing geopolitical concerns. Investors remained cautious as they awaited significant economic data from the United States.

The Organization for Economic Co-operation and Development (OECD) offered some support to the market with a report suggesting that the global economy will likely remain resilient. According to the OECD's recent economic outlook, global GDP growth is projected to reach 3.3% in 2025, following growth of 3.2% in 2024, and stabilizing around 3.3% in 2026.

In France, Prime Minister Michel Barnier faced a vote of no confidence from French lawmakers over a budgetary dispute. He attempted to stabilize his political standing by signaling a readiness to negotiate the budget with Marine Le Pen's far-right National Rally, among other parties.

The pan-European Stoxx 600 index edged up by 0.37%. Germany's DAX rose 1.08%, and France's CAC 40 advanced 0.66%, whereas the U.K.'s FTSE 100 declined by 0.28%. Switzerland's SMI dropped 0.43%.

Elsewhere in Europe, markets in Finland, Greece, Ireland, the Netherlands, Norway, Poland, Spain, Sweden, and Turkey posted gains.

Conversely, Austria, Belgium, Denmark, Iceland, Portugal, and Russia recorded losses.

In the UK market, Legal & General saw a nearly 6% increase, boosted by the company's reassurance of its full-year profit guidance and potential shareholder returns.

IAG and Vistry Group each gained nearly 4%, with IAG benefiting from a JP Morgan rating upgrade.

In Germany, Zalando surged over 8%. Other notable gainers included SAP, Daimler Truck Holding, Rheinmetall, BMW, Mercedes-Benz, Puma, Volkswagen, Fresenius Medical Care, Symrise, and MTU Aero Engines, with increases of 1% to 4%.

Conversely, HeidelbergCement and RWE fell roughly 2.5% and 2.3%, respectively. Other decliners included Merck, E.ON, BASF, Deutsche Post, Deutsche Telekom, Brenntag, and Covestro, down 0.6% to 1.1%.

In France, Renault jumped 5.2%, while Dassault Systemes gained nearly 4%. Schneider Electric, Legrand, Kering, AXA, Unibail-Rodamco, Vinci, Carrefour, STMicroelectronics, BNP Paribas, Credit Agricole, Eurofins Scientific, Capgemini, and Airbus Group all saw increases of 1% to 2.3%.

Stellantis rose more than 1% after refuting rumors of appointing Apple's Luca Maestri as its new CEO.

Orange fell nearly 3%, while Publicis Groupe, Edenred, and ArcelorMittal dropped 1.4% to 2%.

On the economic front, data from S&P Global revealed that the eurozone's private sector re-entered contraction territory in November, with business activity declining sharply due to a renewed fall in service sector output. The HCOB final composite output index fell to 48.3 in November from 50.0 in October, aligning closely with the initial estimate of 48.1.

Eurozone producer prices experienced a year-over-year decline of 3.2% in October, following a 3.4% decrease in September. Within major producer price components, energy showed the steepest annual decline at 11.2%. Excluding energy, producer price inflation rose to 0.8% from 0.6%.

In the UK, the service sector showed its slowest growth in a year, as business activity and new orders increased at reduced rates, according to the S&P Global purchasing managers' survey. The final services Purchasing Managers' Index fell to 50.8 in November from 52.0 in October, yet it was above the preliminary estimate of 50.0. A reading above 50 indicates expansion, while a figure below suggests contraction in the sector.