23:59 19 August 2025
European stocks extend rally
The Stoxx Europe 600 advanced 0.7% on Tuesday, its fifth gain in six sessions and strongest since August 7, closing at a 5.5-month high. Optimism stemmed from renewed political efforts to end the war in Ukraine, with analysts noting Europe’s markets could benefit most from a breakthrough, especially industrial, financial, and construction sectors.
Eighteen of 19 major industry groups rose, led by autos (+2.4%), chemicals (+2.0%), and retail (+1.6%). Real estate was the sole laggard, down 0.2%. Defense stocks slumped, with Leonardo plunging 10.2%, Renk Group sliding 8.3%, Saab 7.0%, Kongsberg Gruppen 6.1%, and Rheinmetall 4.85%. The STOXX Aerospace & Defense index fell 2.6%.
National indices followed suit: Paris’s CAC40 gained 1.2%, Frankfurt’s DAX added 0.5%, and London’s FTSE100 rose 0.4%.
