European stock markets have recorded a significant milestone, climbing for a fifth consecutive month. This marks their longest winning streak since March 2024, fueled by strong corporate earnings and a resilient economic backdrop.
Market Performance and Key Drivers
The Stoxx Europe 600 Index closed the session with a 0.2% gain, cementing its positive monthly performance. The rally was primarily supported by robust showings in the mining and energy sectors, with media companies also contributing to the upward trend. In contrast, travel stocks underperformed, failing to keep pace with the broader market.
Notable Stock Movements and Influences
Trading volumes were lighter than usual on Friday, partly due to a technical outage at the Chicago Mercantile Exchange that disrupted US futures trading. Despite this, several individual stocks experienced significant price swings.
Delivery Hero SE saw its shares surge by an impressive 15%. This jump followed reports that several large shareholders are pressuring the company to undertake a strategic review of its operations.
On the other end of the spectrum, Whitbread Plc shares tumbled 11%, hitting a seven-month low. The lodging group announced that recent business rate changes outlined in the UK budget are expected to negatively impact its earnings starting from 2027. This news was compounded by a stock downgrade from analysts at Bernstein.
Other notable movers included Burberry Group Plc, which fell 2.9% after JPMorgan downgraded its recommendation on the luxury brand to 'underweight'. Conversely, EasyJet Plc enjoyed a 3.0% rise after Bernstein upgraded the airline's stock to 'outperform'.
Broader Market Outlook and Expert Commentary
European equities have delivered substantial returns for investors in 2025, with gains of approximately 14% since the beginning of the year. After a brief dip from a record high earlier in the month, the upward trend resumed this week.
Carl Dooley, head of EMEA trading at TD Cowen, expressed a positive outlook. "Big picture, I think the trend for equity indices remains higher," he stated. He also highlighted that "historically, December is the best month of the year for stocks," suggesting potential for continued strength.
This sustained rally underscores the confidence investors have in the region's corporate health and economic resilience, setting a optimistic tone as the year progresses.
