European Equities Poised for Strongest Year Since 2021
European equities traded at all-time highs on the final day of 2025, setting the stage for their strongest year since 2021, driven by gains in banks and miners.
The STOXX 50 rose 0.5% to near a record 5,785 points, while the broader STOXX 600 climbed 0.5% to a fresh peak of 592 points. For the year, the STOXX 50 is on track to finish up around 19%, with the STOXX 600 set for a 17% gain. Banks led the rally with a remarkable 67% surge, followed by strong performance in basic resources, boosted by rising gold, silver, and other metal prices. Utilities also contributed, supported by higher power demand from data centers and broader electrification trends.
Holiday closures meant Frankfurt, Zurich, and Milan were offline, while London, Amsterdam, Brussels, Paris, and Madrid traded for a half session. Meanwhile, minutes from the Federal Reserve’s meeting revealed that policymakers debated US economic risks before agreeing to cut interest rates in December.
Source: Tradingeconomics.com
