FX.co ★ European Stocks Rally to Record Highs

The STOXX 50 index climbed by 1.3% to an unprecedented high of 5,680 points on Monday. Concurrently, the broader STOXX 600 advanced by 1% to 572 points. This upward movement came as concerns about the stability of US banking subsided and trade tensions between the United States and China showed signs of easing. This followed President Trump's indication that tariffs might be reduced if China recommences its purchases of US soybeans. Financial stocks were particularly strong performers; Banco Bilbao Vizcaya Argentaria rose by 3.9%, UniCredit by 3%, and Intesa Sanpaolo by 2.8%. Conversely, BNP Paribas experienced a significant decline of 7.7% after being ordered by a US jury to pay $20.75 million due to alleged connections to atrocities in Sudan. The defense sector also experienced robust gains amid renewed geopolitical tensions, with Rheinmetall increasing by 6.1% as conflicts in Gaza escalated and no resolution seemed forthcoming for the war in Ukraine. In the consumer sector, L'Oréal saw a 1% increase after agreeing to a €4 billion acquisition of Kering’s beauty division, further solidifying its standing in the luxury cosmetics market.