European equity markets surged to record levels on December 19, 2025, capping off what is shaping up to be the region's strongest annual performance in four years as investors rotated away from expensive U.S. technology stocks and bet on further monetary easing. The STOXX 600 closed at an all-time high of 587.50, rising 0.4% on the day and 1.7% for the week. The Swiss Market Index also reached a new peak, while London's FTSE 100 climbed 0.61% to 9,897.42, marking its third-highest close on record. The rally was powered by European banks, which have emerged as the standout performers of 2025, with the banking index surging approximately 65% year-to-date. Major lenders including Barclays, HSBC, and Standard Chartered all posted gains between 0.9% and 1.4%, benefiting from steep yield curves and excess capital. Defense stocks, up nearly 60% for the year, also contributed to Friday's advance amid continued elevated European security spending. The sector has become a structural theme in European markets, reflecting the region's push to increase military expenditures. #CPIWatch #USNonFarmPayrollReport #USJobsData #BTCVSGOLD #FOMCWatch