FX.co ★ European Stocks Poised for Strongest Year Since 2021

European stock markets experienced an upswing on Tuesday, primarily driven by increases in basic resource and banking sector shares. The STOXX 50 climbed 0.4% to 5,776 points, reaching its highest point since the record on November 12. Meanwhile, the broader STOXX 600 saw a modest rise of 0.1%, setting a new all-time high at 590 points. Despite fluctuations in precious metals and ongoing uncertainty around the Ukraine peace talks, investors remained largely unperturbed. The market's attention continues to focus on the potential for further Federal Reserve policy easing anticipated in 2026, with the release of the most recent FOMC meeting minutes expected later today to provide additional insight. In corporate developments, Novo Nordisk and Eli Lilly announced reductions in the prices of their major obesity treatments in China. For the year, projections indicate that the STOXX 50 is on course to conclude 2025 with an 18% increase, while the STOXX 600 is poised for a 16% rise—its most robust performance since 2021. Tuesday represents the last trading day of the year for several European exchanges, including those in Frankfurt, Milan, Zurich, and across the Nordic region.