European Markets Surge Amid Ukraine Peace Hopes and Mining Growth

European shares soared to an all-time high led by the mining sector following strong earnings. Optimism over a potential Ukraine peace plan added to investor confidence. While basic resources surged, defence saw a decline. EU tariffs were under scrutiny as economic dynamics shift.

European shares reached unprecedented heights on Thursday, driven predominantly by mining giants who reported impressive earnings. The STOXX 600 index leapt 1.2%, with national indexes in Germany, France, Italy, and Spain each climbing about 1.5%.

The basic resources sector saw a 4% increase, bolstered by ArcelorMittal's encouraging steel demand forecast for 2025, propelling its shares up 13.3%. Swedish miner Boliden's shares rose by 13% due to stronger-than-expected fourth-quarter earnings. Aurubis's shares also surged, supported by higher base-metal prices, reinforcing Europe's copper market dominance.

In geopolitical developments, indexes in Austria, Poland, and Finland benefited from news of advanced preparations for a meeting between President Putin and President Trump, heightening hopes for a resolution to the Ukraine conflict. However, Europe's aerospace and defence index slipped 0.9%, marking the day's most significant decline.