Investing.com — European stock markets closed higher on lower volumes affected by the holiday Tuesday.

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

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

The ECB is set to cut rates further in 2025

The DAX has outperformed the major indexes so far in 2024, gaining more than 18%, while the FTSE 100 rose just 5% and political turmoil dragged the CAC 40 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 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 eurozone borrowing costs as the economy falters and panics. part of high inflation to disappear.

“If the incoming data continues 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 the 2% target next year after hitting double figures following Russia’s full-scale invasion of Ukraine in 2022.

The ECB is set to cut rates further in 2025

There was little in the way of major corporate news on Tuesday, but home construction company Vistry Group ( LON: ) revised its expected adjusted pre-tax profit for FY24 to approx. husband of £250 million, up from earlier guidance of £300 million.

In addition, healthcare 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 ages 13-18 through the Soluna platform.

Oil prices strengthened in thin trade

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

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