By Harshit
LONDON, Nov. 25, 2025
European stocks advanced on Tuesday, building on the region’s strong start to the week as global markets continued to rebound from last week’s AI-driven volatility and investors positioned themselves ahead of key central bank decisions.
The pan-European Stoxx 600 index rose 0.6% by mid-afternoon in London, with most major bourses trading in positive territory. Below is a table summarizing the latest market moves across major European indexes:
European Market Snapshot — Nov. 25, 2025
| Index | Latest Level | Change | % Change |
|---|---|---|---|
| CAC 40 (France) | 8,032.38 | +72.71 | +0.91% |
| FTSE MIB (Italy) | 42,738.07 | +439.90 | +1.04% |
| FTSE 100 (UK) | 9,606.14 | +71.23 | +0.75% |
| DAX (Germany) | 23,465.81 | +226.63 | +0.98% |
| IBEX 35 (Spain) | 16,147.00 | +179.20 | +1.12% |
| Stoxx 600 (Europe) | 567.70 | +4.82 | +0.86% |
The upbeat tone followed a rebound in U.S. markets on Monday, powered by renewed strength in artificial intelligence names and optimism over the Federal Reserve’s next policy move. Asia-Pacific markets echoed that momentum overnight, supported by the Wall Street rally.
Rate Cut Expectations Rise Ahead of Fed Meeting
Fed policy remains the central focus for global investors. According to the CME FedWatch Tool, markets now expect an 80% probability of a quarter-point cut in December — a significant jump from last week.
Sentiment strengthened after New York Fed President John Williams said Friday that there was “room to lower rates in the near term.” San Francisco Fed President Mary Daly added Monday that she supports easing due to increasing labor-market fragility.
The shift in expectations has boosted appetite for equities, particularly in rate-sensitive areas of the market.
Corporate Movers: ABN Amro Leads on Sharp Restructuring Plan
Dutch bank ABN Amro jumped 5.7% after revealing plans to eliminate 5,200 jobs by 2028, streamline operations, and divest its personal-loans business to Rabobank. Investors welcomed the cost-reduction roadmap ahead of its Capital Markets Day.
Danish pharmaceutical leader Novo Nordisk rose 3.9% after reporting promising trial results for its next-generation obesity drug Amycretin, which showed up to 14.5% weight loss over 36 weeks in patients with type 2 diabetes.
British airline easyJet recovered from early losses to trade just 0.5% lower, following stronger-than-expected full-year operating profits.
Tech trading remained mixed: Dutch chipmakers ASMI fell 2.7%, while ASML dipped 0.5%, mirroring weakness in the Nasdaq.
Defense Stocks Rebound Amid Early Ukraine Peace Framework
European defense stocks stabilized after sharp losses last week. Germany’s Renk gained 3.9% and Rheinmetall added 1.1%, helping the Stoxx Aerospace & Defense Index rise 0.5%.
The volatility follows reports that Ukraine has tentatively agreed to a framework for a potential peace deal, though details have stirred significant controversy. The proposal — reportedly drafted by U.S. and Russian officials without Ukrainian or European involvement — envisioned Ukraine making major concessions, including territory and military capacity.
European leaders pushed back strongly.
“Ukraine’s territory and sovereignty must be respected,” European Commission President Ursula von der Leyen said after Monday’s meeting. “Only Ukraine can decide its future.”
Talks among the Coalition of the Willing continue Tuesday.
U.K. Budget in Focus
In the U.K., investors are preparing for Wednesday’s Autumn Budget, where Chancellor Rachel Reeves is expected to introduce a series of tax increases. Markets are watching for potential impacts on consumer spending and bond yields.
With improving sentiment and a growing expectation of Fed easing, European equities are holding steady — though geopolitical risk and upcoming fiscal decisions remain important drivers.