Trading Resumes: European Shares Steady Post-Holiday

European stocks remained stable on Monday as trading resumed after the holidays, with resource firms rising and defense stocks declining. The STOXX 600 index slightly increased amid mixed performances across regions. Banks showed minimal change, while the year closes on a strong note with potential market fluctuations ahead.

European shares maintained stability on Monday after trading recommenced following the Christmas and Boxing Day holidays. Gains in basic resource firms were counterbalanced by declines in defense stocks, leading the pan-European STOXX 600 to rise marginally by 0.03% to 588.55, a minor step back from its earlier high of 589.61.

Regionally, Germany's DAX dipped 0.2%, while the UK's FTSE 100 and France's CAC 40 remained nearly unchanged. The STOXX 600's defense and aerospace sectors saw a 1.3% fall following discussions between U.S. President Trump and Ukraine's President Zelenskiy regarding peace terms, with territorial issues yet to be resolved.

Key movers included Leonardo, which fell 4.7%, and both Rheinmetall and Hensoldt, down 2.9%. The banking sector remained stable, having soared by 65% in 2025 due to merger activities and a favorable economic backdrop. With such growth, the STOXX 600 is set for its strongest year since 2021, though global tensions could introduce volatility as 2026 approaches.

(With inputs from agencies.)