Sruthi Shankar

London's blue-chip FTSE 100 hit a record high on Monday for the second session in a row as investors awaited Donald Trump's return to the White House for fresh insights on his stance on tariffs and international relations.

British midcap stocks logged their biggest weekly decline in more than a year on Friday, as surging borrowing costs on the back of higher inflation expectations and concerns about Donald Trump's return to the White House hammered risk sentiment.

European shares closed out a holiday-shortened week lower on Friday, with heavyweight luxury firms and spirits makers leading losses, though focus remained on economic data for clues on the interest rate path and potential changes in U.S. policies under a Donald Trump presidency.

European stocks kicked off the first trading session of 2025 on a high note on Thursday, buoyed by a strong performance in the energy sector, while global investors analysed fresh economic data from the United States.

European stocks recorded their worst quarterly showing in more than two years on Tuesday, as uncertainty around interest rates and the Trump administration's policies halted a rally that had pushed several markets to record highs this year.

European stocks fell on Monday, in line with Wall Street, as still-high government bond yields prompted investors to pull out of equities at the end of a year that has been positive for some regional markets.

Europe's STOXX 600 clocked its second straight weekly fall on Friday, with the healthcare sector leading losses after Danish firm Novo Nordisk tumbled on disappointing data from its next generation obesity drug trial.

European share indices closed up on Wednesday, boosted by technology stocks and French automaker Renault, though gains were capped on caution ahead of the Federal Reserve's policy decision and outlook.

Europe's STOXX 600 fell to two-week lows on Tuesday, pressured by losses in energy and bank stocks, as investors awaited a slew of major central bank decisions later in the week.

French stocks led losses across European markets on Monday after a surprise ratings downgrade by Moody's, while signs of easing strain on euro zone business activity failed to enthuse investors.