European Shares Hit Record High Amid Defence and Insurance Stock Surge

European shares reached a record high, spurred by defence and insurance stocks as investor sentiment brightened toward year-end. The STOXX 600 Index climbed 0.4% as major markets in Germany and the UK also rose. Banking stocks performed well, while personal goods and retail sectors experienced declines.

European stocks achieved record highs on Friday, with the STOXX 600 Index climbing 0.4% to 587.50, propelled by gains in defence and insurance sectors. This boost came as investors remained optimistic despite a recent market selloff.

The index is on pace for its best year since 2021, benefiting from decreasing interest rates and a shift by global investors away from high-valued U.S. tech stocks. The DAX in Germany and London's FTSE 100 also registered gains of 0.4% and 0.6%, respectively.

Defence stocks led the surge, with banks rising by 0.8%. Lenders like Standard Chartered, Barclays, and HSBC saw increases between 0.9% and 1.4%. However, personal goods and retail sectors saw declines due to Nike's weak performance in China impacting related stocks.