European shares were little ​changed on the final trading day of 2025, hovering near record ⁠highs and set to close out a strong year driven by ⁠lower rates, ‌Germany’s fiscal support and rotation away from pricey U.S. tech stocks.

The pan-European STOXX 600 inched 0.1% ⁠lower at 592.03 by 08:22 GMT, but remained on track to deliver its strongest annual performance since 2021, with gains of about 16%.

Trading activity remained subdued ahead of ⁠the New Year holiday, with markets ​in Germany, Italy, and Switzerland already closed. Meanwhile, exchanges in France, Spain, and ‍the UK operated on abbreviated schedules for the day. While major regional bourses ​broadly posted positive returns for the year, Spain's IBEX was set to gain nearly 50% and significantly outpacing its counterparts.

France's CAC 40 was poised for the most modest gains among major European bourses, rising just 10.2%. Political instability, mounting concerns over fiscal debt, and a surge in bond yields all weighed on French market performance.

Germany's DAX index was set for 23% ⁠advance, benefiting from the government's economic support ‌measures, including fiscal stimulus packages and strategic infrastructure investments.

The UK's FTSE 100 continued its winning streak, on track to climb ‌22% in ⁠2025 to mark its fifth consecutive year of positive returns.

(Reporting by ⁠Ragini Mathur in Bengaluru; Editing by Nivedita Bhattacharjee)