European Stock Markets Reach New Heights as STOXX 600 and FTSE 100 Hit Milestones

European stock markets soared on January 2, 2026, with the STOXX 600 rising 0.6% and the FTSE 100 surpassing 10,000 points. This follows 2025's strong performance, driven by falling interest rates and Germany's fiscal stimulus.

Insights:
European stock markets opened the new year with a significant surge, achieving historic milestones on January 2, 2026. The STOXX 600 index rose 0.6% to reach 596.94 points, while London's FTSE 100 crossed the symbolic 10,000-point threshold for the first time. This impressive start to 2026 follows 2025's strongest annual performance since 2021, driven by a combination of falling interest rates, fiscal stimulus from Germany DEDE, and a strategic shift away from high-valuation U.S. tech stocks.
The German share price index DAX graph is depicted at the stock exchange in Frankfurt, Germany, on December 30, 2025. REUTERS/staff
The German share price index DAX graph is depicted at the stock exchange in Frankfurt, Germany, on December 30, 2025. REUTERS/staff
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