Europe’s STOXX 600 clocks best week in over a month as rally broadens

July 4, 2026

European stocks surged to record highs this week, with the STOXX 600 and Germany’s DAX hitting all-time peaks. Investors are betting against an imminent US rate hike, boosting cyclical stocks. Defence shares also climbed amid geopolitical tensions. Signs of easing inflation and a balanced economic outlook in the Eurozone are further supporting the rally, making European markets attractive due to lower valuations.

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