European shares rose to a record high on Friday in the first trading session of 2026, after ending last year with strong gains led by defense stocks.
By 0820 GMT, the pan-European STOXX 600 index was up 0.4 percent as investors returned from the New Year holiday. The index is on track for its third consecutive weekly gain.
The index ended 2025 with its best performance since 2021, buoyed by lower interest rates, fiscal stimulus in Germany, and a surge in interest in other stocks unrelated to the high-performing US technology stocks.
Stocks withstood a year of tariff wars, recovering from their lowest point of the year in April when global markets were shaken after US President Donald Trump imposed sweeping tariffs on trading partners.
Most stock exchanges across Europe rose on Friday, although trading volumes were weak.
The Swiss stock exchange is closed today and trading will resume next week.
Within the Stoxx 600 index, defense stocks led the gains, rising 1.9 percent.
The index was also supported by heavily weighted bank stocks, which rose 0.2 percent.
Basic resources-related stocks rose 1.3 percent, while the energy index gained 1 percent.
On the other hand, consumer-related stocks fell 0.2 percent.
