European shares ended 2023 with an annual gain of almost 13% on hopes of softer monetary policy from major central banks next year.
The pan-European STOXX 600 edged up 0.1% this evening, posting its seventh weekly gain in a row and its best December performance since 2021.
It closed the year 12.6% higher, with rate-sensitive technology stocks among the best-performers.
Global markets have rallied in the last two months as bond yields retreated on hopes of central bank rate cuts in early 2024.
But the European Central Bank has yet to indicate any potential easing ahead although money markets indicate an 80% chance of a first cut in March.
The European share benchmark has recovered more than 12% from lows in March when global markets were rattled by the swift collapse of Swiss lender Credit Suisse and US mid-sized lender Silicon Valley Bank.
Italian shares outpaced their regional peers this year, with an almost 30% rise, while Swiss and British indices were the laggards.
Media stocks led gainers today, with a rise of 0.5%, followed by banks.
Bourses across Europe, including in Dublin, will be closed on January 1 due to the New Year holiday.
Meanwhile, US stocks softened on Wall Street tonight, closing modestly lower on the last trading day of 2023 and capping a robust year-end rally as investors eyed easier monetary policy in the year ahead.
The US stock market has seen remarkable upward momentum in the closing months of the year, powering all three major indexes to monthly, quarterly and annual gains.
For the year, the Dow Jones, the Nasdaq Composite and the S&P 500 posted double-digit growth.
