European Stocks Hit Fresh Records

2025-12-30 15:32 By Joana Ferreira 1 min. read

European equities extended their record-breaking run on Tuesday, driven by strong gains in banking and commodity stocks.

Investors appeared largely unfazed by volatility in precious metals and renewed uncertainty surrounding Ukraine peace talks, instead focusing on expectations for additional Federal Reserve policy easing in 2026.

The STOXX 50 gained 0.8% to a new all-time high of 5,796 points, while the broader STOXX 600 rose 0.6% to a fresh record peak of 593 points.

For the year, the STOXX 50 is on track to close 2025 up around 19%, while the STOXX 600 is set for a 17% annual gain, marking their strongest performances since 2021.

The rally has been underpinned by easing interest rates, Germany’s commitment to fiscal expansion, and a rotation by investors away from richly valued US technology stocks.

Defense shares have been standout performers, heading for their largest annual gain since 1996 amid expectations of increased military spending across Europe.



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