Investing.com -- At the start of Friday’s session, European shares climbed to record highs, opening 2026 on a positive note as investors assessed eurozone manufacturing data and UK housing figures. However, while European indices closed the day higher, they pulled back from their highs.
The STOXX 600 rose 0.6%, while Britain’s FTSE 100 closed up 0.2%, easing to 9,951.14 points after briefly topping the 10,000 mark. Germany’s DAX advanced 0.1%, and France’s CAC 40 gained 0.6%.
Europe round up
However, the eurozone manufacturing sector faced challenges at the end of 2025, with production levels decreasing for the first time since February. According to HCOB PMI data released Friday, the Eurozone Manufacturing PMI fell to 48.8 in December from 49.6 in November, hitting a nine-month low and signaling worsening factory conditions.
In the UK, house prices unexpectedly dropped 0.4% in December, resulting in just 0.6% annual growth for 2025 - the weakest yearly increase since April 2024, Nationwide Building Society reported.
Economists had expected a 0.1% monthly rise and 1.2% year-over-year growth. This marked a significant slowdown from November, when prices had risen 0.3% month-on-month and were 1.8% higher than a year earlier.
UK manufacturing expanded for a second month in December, with the PMI at a 15-month high of 50.6, driven by higher output, new domestic orders, and inventory building, mainly among large firms.
However, exports and employment continued to fall, costs rose, and business confidence weakened, casting doubt on the durability of the recovery.
Euro area money supply growth picked up in November, with M3 rising 3% and M1 remaining the main driver, while short-term deposits fell slightly.
Bank lending to households and non-financial corporations also increased, with annual growth rates of 2.9% and 3.1%, supporting broader credit expansion.
In renewable energy news, Revolution Wind LLC filed a supplemental complaint Thursday challenging a lease suspension order from the Bureau of Ocean Energy Management. The joint venture between Global Infrastructure Partners’ Skyborn Renewables and Oersted AS (CSE:ORSTED) plans to seek a preliminary injunction against the December 22 order. The company, which is 50% owned by Oersted, stated it believes the lease suspension violates applicable law and harms the project.
Meanwhile, Tesla’s December 2025 registrations fell sharply in France and Sweden but surged 89% in Norway, highlighting uneven demand across Europe.
The Texas-headquartered company’s European market share declined to 1.7% as weaker performance outside Norway contrasted with record sales in the country, where EV adoption is near total.
In retail news, Lidl GB reported a 10% year-on-year increase in Christmas sales, with turnover exceeding £1.1 billion ($1.48 billion) for the four weeks to December 24.
The British arm of the German supermarket group, which ranks as Britain’s sixth-biggest grocer, said nearly 51 million customers visited its stores during the period, representing an 8% increase compared to the previous year.
ASML shares rose 3% after Aletheia Capital upgraded the stock to “buy” and doubled its price target to $1,500, citing strong demand for EUV lithography tools.
The brokerage expects TSMC to drive significant EUV installations, with ASML’s revenue and earnings projected to accelerate sharply through 2027, well above consensus estimates.
