European stocks edged higher on Tuesday as investors awaited the minutes of the Federal Reserve’s last meeting, while focus remained on Ukraine peace negotiations.
The Stoxx Europe 600 Index rose 0.2% at 9:44 a.m. in London. Germany’s DAX Index advanced 0.2% on the final trading day of the year for the benchmark. The gauge is heading for its biggest annual gain since 2019 on optimism around a boost from bumper fiscal stimulus.
Miners and banks outperformed, while food and beverage as well as personal care shares were the biggest laggards. Fresnillo Plc rose 3.6% as Citigroup Inc. analysts boosted their price target on the company while maintaining a buy rating, to take account of higher silver and gold prices.
Europe’s benchmark index is tracking its sixth monthly advance in a row, setting it up for the biggest annual rally since 2021. Market participants remain confident of further gains in 2026 amid a resilient global economic outlook and the prospect of higher fiscal spending in the region.
“The narrative is still a bullish one going into the new year,” said Kyle Rodda, a senior analyst at Capital.com. “The growth outlook in the US is looking strong but there’s optimism there’ll be enough disinflation to allow the Fed to lower interest rates further.”
Minutes of the Fed’s December meeting are due after the close of European stock trading on Tuesday.
Meanwhile, US President Donald Trump’s campaign to end the war in Ukraine faced new complications after a call with Russian President Vladimir Putin on Monday. A Goldman Sachs Group Inc. basket of regional defense stocks rose 0.6%.
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