European shares end choppy session at record high

EUROPEAN shares ended Monday’s session at a record high, although gains were small as the US government’s threat to indict Federal Reserve Chair Jerome Powell renewed investor concerns about central bank independence.

The pan-European Stoxx 600 ended 0.2 per cent higher at 610.95 points with precious metals companies Aurubis and Fresnillo among biggest sectoral gainers.

The prospect that US President Donald Trump might be able to force through lower interest rates drove up the price of non-yielding gold, which is also benefiting from safe-haven demand as geopolitical tensions are high.

Germany’s DAX added 0.6 per cent to finish at a record high and logged a 10-day winning streak, its longest since August 2024. Most other regional bourses ended flat.

Volatility index rises to its highest in more than a month

The market is grappling with geopolitical risks, including the US capture of Venezuela and violence in Iran. Defence stocks rose 0.5 per cent, extending gains to seven straight sessions.

Reflecting investor nervousness, the Euro Stoxx Volatility index rose 0.68 points to 16.2 - its highest in over a month.

Swissquote senior market analyst Ipek Ozkardeskaya said she expected investment flows to continue into European stocks. “The sectors that are going to be in focus again are going to be mining stocks due to the debasement trade rising prices of hard commodities including gold, silver, copper or any other hard commodity,” she said.

Brewing and auto sectors

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In corporate news, Heineken slid 4.1 per cent to its lowest level in three months after the Dutch brewer announced that its CEO Dolf van den Brink will step down.

Investors weighed quarterly results from the auto sector. Porsche shares dropped 6 per cent on concerns that current estimates for the luxury carmaker’s results may be too high, while Volkswagen lost 1.3 per cent as vehicle deliveries fell 4.9 per cent in the fourth quarter of 2025.

Banks reversed earlier losses after Trump on Friday called for a one-year cap on credit card interest rates at 10 per cent, starting on Jan 20, but did not provide details.

“A 10 per cent ceiling on credit-card rates, roughly half today’s average interest rate, would upend the basic economics of the industry, forcing lenders to rethink how they manage risk and who they’re willing to lend to,” said Hargreaves Lansdown senior equity analyst Matt Britzman.

BE Semiconductor Industries advanced 7.3 per cent after the chip equipment supplier reported better-than-expected preliminary orders for the fourth quarter. Shares of French biotech Abivax pared initial gains and ended up 5 per cent after a media report said US pharma giant Eli Lilly was still interested in buying the company. REUTERS