Market

European stocks hold near record highs as year-end caution sets in

European shares steadied on Tuesday after touching record highs in the previous session, with investors turning cautious in the final trading week of the year.

Brussels: The pan-European STOXX 600 index edged up 0.08 per cent to 589.69 points, hovering close to its highest levels. As 2025 draws to a close, the benchmark remains on track for strong gains on a monthly, quarterly and yearly basis.

Moves across major regional markets were muted. London’s Financial Times index rose 0.1 per cent, while French equities slipped 0.1 per cent, reflecting a cautious tone across the region.

Sector-wise, basic resources led gains on the STOXX 600, climbing 1.04 per cent, as silver and gold prices stabilised following a sharp retreat from record highs. Banking stocks advanced 0.7 per cent, while the aviation and defence sector added 0.2 per cent.

In contrast, healthcare and consumer-related stocks weighed on the index, falling 0.1 per cent and 0.2 per cent respectively.

With the New Year holiday approaching, market participants expect trading volumes to remain subdued. Attention later in the day will turn to the release of minutes from the US Federal Reserve’s December policy meeting, which could offer fresh clues on the interest rate outlook for the months ahead.

European stocks remain near record highs as the year-end approaches, with the STOXX 600 index slightly up. Gains in basic resources and banking stocks offset declines in healthcare and consumer sectors. Market activity is subdued ahead of the New Year, with attention on the US Federal Reserve's policy meeting minutes for interest rate insights.

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