European markets close mixed on last trading day of 2025; Defense stocks rose

LONDON — European stocks ended mixed on the last trading day of the year.

The pan-European Stoxx 600 index closed a shortened trading session 0.1% lower on Wednesday, with most sector indexes in negative territory.

The U.K.’s FTSE 100 ended the day down 0.2%, bringing the index to an annual gain of 21.5% – its strongest yearly gain since 2009.

Meanwhile, France’s CAC 40 ended New Year’s Eve down 0.2%, while Germany’s DAX rose 0.6%. Italy’s FTSE MIB gained 1.1%, bringing annual gains to 31.5% and its best year since 1998.

Markets were open for a half-day of trading on Wednesday, and will be closed on Thursday for the New Year’s Day holiday before reopening on Friday.

Defense stocks rose for a second day, with Saab, Renk and Rheinmetall closing between 2% and 3% higher, bringing annual gains for shares to between 130% and 193%.

Biotech firm Abivax closed as the blue-chip index’s top performer, up 3.8%, as well as the best performer over the year, boasting a 1,616% gain. The French company surprised investors with a better-than-expected clinical trial readout for its lead asset – a medicine for ulcerative colitis – over the summer, and has been the subject of speculation of an imminent buyout.

Regional stocks had extended gains to notch a fresh record high on Tuesday, with the pan-European Stoxx 600 index closing 0.7% higher.

London-listed Fresnillo was among the worst-performing stocks in the Stoxx 600 index on Wednesday, falling 2.3% after a 6% jump on Tuesday. Other mining stocks were also top performers in the previous trading session, with Anglo American, Antofagasta, and Glencore rising around 3% each, but were spared any big pullbacks on Wednesday.

Precious metals, notably gold and silver, were also firmly in focus for investors during the holiday-shortened trading week. Silver futures retreated 8.4% to trade at $71.41 an ounce while gold futures dropped 1.4% to $4,327.20 an ounce in afternoon trading.

U.S. stocks slipped slightly in premarket trading, heading for their fourth-straight losing session, as Wall Street prepared to ring out the last day of 2025. The S&P 500 looks set to lock in a 17% rise for the year in a third straight year of double-digit gains, although it appears to have missed out on a so-called “Santa Claus rally.”

Meanwhile, Asia-Pacific stocks fell overnight; markets in Hong Kong and Australia will close early for the holidays, while Japan and South Korea are shut for the day.

There were no major data releases in Europe on Wednesday.

– CNBC’s Sarah Min contributed to this report