European shares open the year by hitting record highs

Stock markets made strong gains in 2025

Vidya Ranganathan and Rae Wee

Reuters

European stocks began 2026 at fresh record highs as investors braced for a year set to test the AI-led rally, usher in a change of guard at the US Federal Reserve, more government spending and potentially more turbulence under Donald Trump’s presidency.

London’s blue-chip Ftse 100 index hit the symbolic 10,000 points mark for the first time yesterday, while the pan-European Stoxx 600 index hit another peak while on course for its third consecutive weekly advance.

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