(Bloomberg) — Europe’s benchmark index rose above its November closing record, following a global rally fueled by the Federal Reserve’s interest rate cut and its upbeat assessment of the U.S. economy. The Stoxx Europe 600 rose 0.5% to 584.39 points by 08:30 in London, surpassing its closing point set on November 12. The blue-chip Euro Stoxx 50 was also set to close at a record for the first time in a month. UBS Group AG shares rose as much as 5% to their highest level since 2008, after a group of centre-right Swiss lawmakers proposed a compromise solution to the debate over the group’s capital levels, focusing on allowing the bank to use more convertible bonds to meet its higher future requirement. Gilles Guibout, head of European equities at AXA IM, said with most economists betting on improving European growth, “this should mean double-digit earnings growth in 2026, and no reason to be bearish.” Travel and leisure stocks as well as financial services outperformed, while personal care led declines. European mining shares outperformed the broader benchmark as buyers climbed to a record after the Fed rate cut and on concerns about tightening global supply. Oil rose from its lowest close in nearly two months, supported by bullishness in broader financial markets. Sportswear stocks were higher after Lululemon Athletica shares jumped in after-market trading in New York as the yoga wear maker boosted its full-year outlook. Adidas AG rose 2.8%, Puma SE added 4.7%, while retailer JD Sports Fashion Plc rose 1%. The Stoxx Europe 600 index is expected to rise by about 7% by the end of next year and reach 620 points, according to the median forecast in a Bloomberg survey of 17 strategists. The last time forecasters were so uniformly bullish was for 2018, when the Stoxx 600 fell 13%. “Everyone is convincing themselves that there is going to be a Christmas rally, so it looks like there will be one,” said Karen Georges, a fund manager at Ecofi Investissements in Paris. “Investors are keen to buy this year’s arrears, it’s a good time to diversify your portfolio right now,” she added. For more information about stock markets: Do you want more news about this market? Click here for a curated First Word feed of active news from Bloomberg and select sources. This can be customized according to your preferences by clicking in Actions on the toolbar or pressing the HELP key for help. To subscribe to a daily list of European analyst rating changes, click here. –With help from Michael Msika and Sagarika Jaisinghani. More stories like this are available on bloomberg.com ©2025 Bloomberg LP