FX.co ★ European Stocks Hit Fresh Records

European stock markets continued their impressive upward trend on Tuesday, bolstered by significant gains in banking and commodity sectors. Investors remained relatively unperturbed by fluctuations in precious metals and renewed uncertainty in Ukraine peace discussions, choosing instead to concentrate on anticipated further monetary policy easing by the Federal Reserve in 2026. The STOXX 50 surged by over 1%, reaching a new peak of 5,820 points, while the broader STOXX 600 climbed 0.5% to a new record of 592 points. This year, the STOXX 50 is poised to conclude 2025 with approximately a 19% increase, while the STOXX 600 is on track for a 17% annual rise, marking their strongest performances since 2021. This rally has been fueled by declining interest rates, Germany's commitment to fiscal expansion, and a shift by investors away from highly valued U.S. technology stocks. Defense-related stocks have notably excelled, heading for their largest annual gain since 1996, driven by expectations of heightened military expenditures across Europe.