2025.10.0816:11:31UTC+00European Stocks Close at Record Highs

European stocks reached unprecedented levels on Wednesday, effectively erasing the declines witnessed over the previous two sessions. This resurgence was bolstered by robust performances from banking institutions and major industrial enterprises, as markets evaluated the ramifications of the EU's newly imposed tariffs. The Eurozone's STOXX 50 index climbed by 0.8%, reaching 5,656, while the broader pan-European STOXX 600 similarly increased by 0.8% to settle at 574. Prominent financial corporations were at the forefront of the day's gains, mirroring the positive momentum in key government bonds within the euro area. This came as investors reassessed fiscal risks tied to the EU, particularly amid France’s political turmoil and Germany’s escalated debt levels. Notable players like Allianz, Santander, UniCredit, AXA, and BBVA witnessed gains ranging from 1.8% to 2%. Additionally, luxury brands and industrial magnates experienced significant upward trends, with companies such as Siemens, LVMH, Hermes, and Safran appreciating by over 1.5%. Concurrently, the EU declared its intention to reduce tariff-free quotas on imported steel shortly after hiking tariffs on the metal to 50%. This announcement propelled steelmakers ArcelorMittal and ThyssenKrupp to substantial gains, with their stocks advancing by 6.6% and 4.7%, respectively. In contrast, the automobile sector suffered notable setbacks.