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(Sharecast News) - European shares bounded to new intra-day highs on Tuesday after hitting fresh records a day earlier with defence and miners in focus amid soaring metals prices and slow progress on talks to end the war in Ukraine.
The pan-regional Stoxx 600 index was up 0.49% at 592.14 with most major bourses in the green. Trade was thin as traders wound down for the New Year break.
"The overriding theme is that global stock indices have lost momentum into year end. There are plenty of reasons for this, including decent returns for 2025, and investors waiting to make big trading decisions until after the Christmas break," said XTB research director Kathleen Brooks.
"But perhaps the most powerful reason is that the MSCI World Index excluding the US has outperformed the S&P 500 by the highest margin since 2009 this year."
"The S&P 500 has risen more than 17% so far this year, compared to a 29% gain for the MSCI ex US index. The last time this happened the global economy was recovering from the financial crisis. "
"Ironically, this has happened even though valuations for US companies, especially tech companies, have soared this year. Broadcom, Tesla and Eli Lily joined the trillion dollar club in 2025, while the majority of trillion dollar companies are US tech firms. The core group of tech stocks worth more than $1trln include the likes of Nvidia, Meta, Microsoft and Google, and combined they are worth a staggering $21trln."
Defence stocks were back in favour as Ukraine peace talks continued despite demands from Russia that Kyiv cede territory in the Donbas region.
Meanwhile Ukraine President Volodymyr Zelenskyy accused Russia of trying to sabotage the talks and preparing to bomb government buildings after the Kremlin said it had foiled a Ukrainian drone attack on Vladimir Putin's residence.
The signs of underlying tensions saw defence stocks rally after recent losses, with Rheinmetall, Hensoldt, Saab, Renk, Babcock and Leonardo all higher.
Soaring gold, silver and copper prices boosted miners as investors sought safe havens and positions in commodities needed for renewable energies.
Fresnillo led the way with a 5% gain. Glencore, Anglo American and Antofagasta were also all higher.
Reporting by Frank Prenesti for Sharecast.com