29.12.202508:34:34UTC+00European Stocks Edge Higher as 2025 Draws to a Close

European equities started the final trading week of 2025 with a slightly positive trend, as the year draws to a close, marking a stellar performance for global financial assets. The STOXX 50 increased by 0.2% to 5,760 points, remaining near its peak since mid-November. Meanwhile, the broader STOXX 600 held steady at a historic high of 589 points. Trading activity is anticipated to stay light as investors look ahead to the New Year holidays, particularly after a four-day Christmas break and a new record close for Wall Street on Friday.

Market participants are evaluating the prospects for further policy easing by the Federal Reserve in 2026 while keeping an eye on geopolitical developments. President Trump of the United States stated that a resolution to the conflict in Ukraine is "closer than ever." However, he acknowledged that unresolved "thorny" issues concerning the future of the Donbas region persist. In terms of sector performance, defense stocks lagged, with Leonardo dropping over 4%, Rheinmetall decreasing by 2.5%, Hensoldt down by 3%, and BAE Systems slipping by 1.5%.