Europe opens higher, hitting new highs despite geopolitical uncertainty

⚡MarketPrimes Fast

Major European stock markets opened in positive territory, reaching new historical highs.

The CAC 40 touched 8,396 points, while the FTSE 100 and Stoxx 600 also hit record levels.

Precious and base metals, including gold, silver, copper, and tin, reached new historical peaks.

Investors remain focused on potential US Supreme Court rulings on Donald Trump’s tariffs and ongoing geopolitical developments.

Pharmaceutical and mining sectors showed strong performance, while some stocks fell following analyst revisions.

AI-generated key points”In brief”

Strong opening for European markets

On Wednesday morning, European markets started the session in positive territory, continuing a strong upward trend that resulted in new record highs. In Paris, the CAC 40 gained 0.47% to 8,387 points, after briefly reaching 8,396.72 points. London’s FTSE 100 advanced 0.26%, while Frankfurt’s DAX rose 0.07%, remaining close to its peak from the previous day. The EuroStoxx 50 index increased 0.29%, and the Stoxx 600 rose 0.3%, hitting new all-time highs.

These gains occur amid geopolitical uncertainty, with investors cautious ahead of a potential US Supreme Court decision on the legality of tariffs imposed by Donald Trump.

Global markets take a pause

Despite European records, Wall Street showed mixed performance. The Nasdaq fell 0.62%, the S&P 500 declined 0.41%, and the Dow Jones remained essentially flat at -0.04%. Paris, London, and Frankfurt showed minimal changes, though indices remain near all-time highs.

The cooling of US inflation, with the CPI at 2.7% in December, helped ease concerns, while the November Producer Price Index (PPI) rose modestly by 0.2%.

Patrick Munnelly, market strategist at Tickmill Group, noted that global markets remain at record levels, driven by the ongoing technology boom, particularly linked to artificial intelligence, despite geopolitical tensions.

Precious and base metals reach record levels

Safe-haven assets surged. Gold approached historic levels at $4,641 per ounce, while silver surpassed $90 for the first time, reaching around $92.22.

Meanwhile, industrial metals also hit record highs. Copper reached $13,407 per ton, tin $54,760 per ton on the LME, with zinc and aluminum following the upward trend. These gains reflect investor confidence in global growth, despite geopolitical unrest tied to the Trump administration.

UK-listed mining companies, including Antofagasta (+1.39%), Fresnillo (+1.80%), Rio Tinto (+1.75%) and Glencore (+2.79%), benefited from the price surge since the start of the year.

Sector highlights and stock performance

The pharmaceutical sector attracted attention. Bayer rose 5.67% to €41.16 after raising its forecasts for the pharmaceutical division due to the success of recent drugs and planned launches in 2027.

In healthcare, Ipsen (+5%) received “innovative therapy” designation from the US FDA for its IPN60340 drug in first-line treatment of acute myeloid leukemia. In Helsinki, Orion (+12%) anticipates over €1 billion annual revenue from its Nubeqa treatment in 2026.

Conversely, some stocks declined following analyst revisions: Pearson (-6%) in London and Autoneum (-10%) in Zurich.

Investor watchpoints

Investors are closely monitoring key indicators:

• The outcome of the US Supreme Court decision on Trump’s tariffs.
• Quarterly results from US banks, including Bank of America, Citigroup, and Wells Fargo, to gauge financial sector health.
• US economic indicators, including retail sales and producer prices, providing insights into inflation and consumer spending.

US 10-year bond yields remained stable at 3.53%, reflecting moderate confidence despite geopolitical uncertainties.