European equity markets maintained their upward momentum on the first trading day of 2026, with key indices achieving new record highs, even amidst the thin trading volumes typical following the New Year festivities. The STOXX 50 advanced by 0.7% to reach an unprecedented 5,830 points, and the more comprehensive STOXX 600 increased by 0.4% to a historic 595 points. This robust start comes on the heels of an impressive 2025, highlighted by an approximate 18% rise in the STOXX 50—its third year of consecutive gains—and a 17% increase in the STOXX 600, both fueled by sustained economic growth and anticipations of heightened fiscal expenditure across Europe. As the year progresses, investors are keenly observing potential new drivers, with a focus on the US interest rate outlook, while geopolitical issues continue to influence market sentiment in the background.