European Stocks Rise as Miners Rally Before Fed Meeting Minutes
European stocks rose on Tuesday, with miners tracking a rally in commodity prices, while investors awaited the minutes of the Federal Reserve’s last meeting.
The Stoxx Europe 600 Index rose 0.6% at the close. Germany’s DAX Index advanced 0.6% on the final trading day of the year for the benchmark, after a shortened session. The gauge posted its biggest annual gain since 2019 on optimism around a boost from bumper fiscal stimulus.
Italy’s FTSE MIB Index rallied 1.1%, outperforming European peers. The gauge wrapped up its last session in 2025 with total annual gains of 32%, the best since 1998.
The blue-chip Euro Stoxx 50 Index added 0.8%, closing at a record for the first time since November.
The mining sector advanced 1.7% as copper prices headed for the longest winning run since 2017. Banks and technology stocks also outperformed, while food and beverage as well as health care shares were the biggest laggards.
Fresnillo Plc rose 6.8% as Citigroup Inc. analysts boosted their price target on the company while maintaining a buy rating, to take account of higher silver and gold prices.
Europe’s benchmark index is tracking its sixth monthly advance in a row, setting it up for the biggest annual rally since 2021. Market participants remain confident of further gains in 2026 amid a resilient global economic outlook and the prospect of higher fiscal spending in the region.
“The narrative is still a bullish one going into the new year,” said Kyle Rodda, a senior analyst at Capital.com. “The growth outlook in the US is looking strong but there’s optimism there’ll be enough disinflation to allow the Fed to lower interest rates further.”
Minutes of the Fed’s December meeting are due after the close of European stock trading on Tuesday.
Meanwhile, US President Donald Trump’s campaign to end the war in Ukraine faced new complications after a call with Russian President Vladimir Putin on Monday. A Goldman Sachs Group Inc. basket of regional defense stocks rose.
Source : Bloomberg.com
