European shares inched up to touch record highs in the opening session of the final trading week of the year, even as a rally on Wall Street lost steam and defence stocks fell.

DUBLIN

The Iseq index was essentially flat at the start of a typically light-volume week. AIB was among the biggest movers, advancing 0.7 per cent on relatively high volumes for the session to €9.20 per share.

PTSB also advanced, eking out a 0.4 per cent gain, but Bank of Ireland was out of step, sliding 1.2 per cent to €16.23 per share.

Ryanair, meanwhile, was largely unchanged at €29.43 per share. Kerry Group, another index heavyweight, advanced by 0.7 per cent to close at €77.25 per share.

LONDON

Reversing earlier declines, the benchmark FTSE 100 finished flat, while the domestic-focused FTSE 250 inched 0.4 per cent higher. Prospects of a potential Russia-Ukraine ceasefire weighed on defence stocks, with Rolls-Royce shedding more than 1 per cent. BAE Systems also dipped 0.7 per cent.

Volumes are expected to remain subdued in another holiday-shortened week, ‍with UK markets set to close early on Wednesday and stay shut on Thursday for the new year break.

Industrial metal miners, including Rio Tinto and Antofagasta, were up 0.9 per cent after copper set a record ‌as last week’s sharp rally in Shanghai spilt into a Christmas holiday-curtailed global market.

The FTSE 100 has surged nearly 21 per cent so far this year, supported by a rally in ‌defence stocks amid geopolitical tensions and gains in miners and banks. The index is on track for ⁠a fifth straight yearly rise, outperforming the pan-European Stoxx 600’s 16 per cent gain and Wall Street benchmark S&P 500’s 17 per cent increase in 2025.

EUROPE

The blue-chip Stoxx 50 edged 0.2 per cent higher, while the pan-European Stoxx 600 was up 0.1 per cent as trading resumed following ‍the Christmas holiday.

The defence and aerospace ⁠sector fell 1.3 per cent after US President Donald Trump and Ukraine’s President Volodymyr Zelenskiy met to discuss Ukraine peace terms. Leonardo fell 4.7 per cent, while Rheinmetall and Hensoldt were both down 2.9 per cent, though they pared losses later in the session.

Gains in basic resources more or less offset those defence sector declines, however, despite a pullback in metal prices. Tara Mines owner Boliden added more than 1 per cent, while UPM Kymmene jumped by almost 2.7 per cent.

European stocks are set to wrap up their third straight year of gains. The regional benchmark is also on track for one of its strongest quarters in two years amid lingering optimism around global economic growth and lower borrowing costs.

NEW YORK

The S&P 500 Index fell at the open on Monday amid traders’ intensifying unease about volatile asset moves and geopolitical tensions.

Nvidia and Palantir Technologies were among the top decliners by volume as the two were featured in stories wrapping the biggest trades of the year.

The S&P 500 dropped 0.2 per cent. Energy, utilities and property led sectors in the green, while materials, consumer discretionary and tech led declining sectors. The Nasdaq 100 Index fell 0.3 per cent.

Nvidia fell as much as 2.4 per cent, while Palantir shed as much as 2.2 per cent.

Investor Michael Burry’s November disclosure that his Scion Asset Management held protective put options in the pair spurred doubt about a market dominated by a narrow group of artificial intelligence-linked stocks.

Silver retreated from a record-breaking rally powered by a structural imbalance in supply and demand, sending silver mining stocks lower.

Among decliners, Coeur Mining shed 4.2 per cent while Newmont dropped 5.8 per cent.

Energy stocks were among the winners, with Devon Energy rallying 0.8 per cent and Exxon Mobil advancing 0.4 per cent.

Oil climbed as US-led talks to end the war in Ukraine failed to yield a breakthrough. – Additional reporting: Bloomberg, Reuters