European stocks clinch best year since 2021 


The Stoxx 600 index advanced 17% this year in its biggest annual gain since 2021. — Bloomberg

LONDON: French and UK shares slipped in thin trading, while the European benchmark wrapped up the year near an all-time peak.

France’s CAC 40 fell 0.2%, while the FTSE 100 was down about 0.1% after trading for half a session.

The UK benchmark rallied 22% in 2025, its best year since 2009.

The blue-chip Euro Stoxx 50 index was little changed.

It jumped 18% in 2025, its third straight year in the green.

Bourses in Germany, Italy, Denmark, Switzerland and Finland were shut through the day.

Seplat Energy Plc rose 11% as Maurel & Prom sold a stake in the energy firm at a premium.

The Stoxx 600 index advanced 17% this year in its biggest annual gain since 2021 amid resilient economic growth and the prospect of higher fiscal spending in the region.

Banks have been the best-performing sector, enjoying their strongest showing since 1997.

Danni Hewson, head of financial analysis at AJ Bell, said European stocks should maintain momentum into the new year.

“Investors have been looking beyond the usual suspects for value and diversification as the US dollar came under pressure and the world continued to be beset with geopolitical turmoil and fears of an artificial intelligence bubble,” she said.

Trading volumes were light, but history shows January could bring more volatility as investors return after the holidays.

The VIX tends to remain below 15 through December but typically spikes – in some cases above the psychological level of 20 – in January. — Bloomberg

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