2025.12.1917:13:13UTC+00European Stocks Rise, Stoxx 600 Hit Record

European stocks experienced an upswing on Friday, with the STOXX 50 advancing by 0.6% and the STOXX 600 climbing 0.4% to reach a new high. This rise was fueled by anticipated further interest rate cuts by the Federal Reserve next year, as well as diminishing speculation that the European Central Bank (ECB) will increase borrowing rates in 2026. The rally was widespread, propelling heavyweight stocks, including a 1% increase in ASML, a nearly 2% uptick in Novo Nordisk, and over 1% gains in both HSBC and AstraZeneca. Both cyclical and defensive sectors showed strength, with Rolls-Royce climbing 2.7%, Prosus advancing 2.3%, Roche increasing by 2.2%, and Iberdrola and Shell both rising 1.5%, while Safran gained 1.3%. On the downside, sportswear companies lagged, highlighted by Puma’s 1% decline and Adidas’s 3% drop following Nike's report of another quarterly margin decrease, attributing it to weak demand in China and increased tariffs. Additionally, investors processed the European Union's decision to issue joint bonds to fund €90 billion in loans to Ukraine. Over the week, the STOXX 50 improved by 1% and the STOXX 600 by 1.6%.