02.01.202616:58:28UTC+00European Stocks Extend Record Highs

European stocks commenced the year on a robust note, closing significantly higher and setting new records during the first trading session. This upward momentum was driven primarily by gains in the technology and industrial sectors, as markets evaluated the influence of the broader macroeconomic environment on corporate performance for the year ahead. The Eurozone's STOXX 50 index rose by 0.9% to reach 5,844, while the pan-European STOXX 600 index increased by 0.6% to 596. Notably, ASML surged nearly 7%, buoyed by favorable upgrades from major asset managers and encouraging developments in chip-producer initial public offerings in Asia. The automotive sector also performed well, with Mercedes-Benz, BMW, and Volkswagen each seeing more than a 3% rise. Meanwhile, Safran and Airbus each posted a 3% gain, leading the aerospace sector and setting a benchmark for defense contractors. These advances contribute to the substantial increase observed in European equities over the past year, fueled by Germany's higher deficit spending, a strategic shift away from U.S. assets mid-year, and interest rate reductions by the European Central Bank.