It was feared that the war, the one in Ukraine and the one in the Middle East, would have sunk them all. It was feared that the Donald Trump tariffs would have wiped out world trade, sending the global economy into recession and slowing the stock market's rise. It was feared that the hesitations of the Federal Reserve on the rate cuts (brought to 3,5% at the end of the year), the pressure from the US president on his governor and the shutdown longest in history would have jeopardized the economic and financial stability of the stars and stripes. It was feared that the terrifying AI bubble exploded, wiping out in one fell swoop those tech multiples unanimously considered too high and showing the world the same scenario we had already seen in the 2000s with the Dot-coms. And yet, with only two trading sessions left until the end of 2025, the world stock exchanges they score another one year of increases, ignoring the difficulties and problems that could have knocked them out and which instead became – see for example the war for the Defense sector – yet another lever on which to grind out profits.
And so, the end of year balance is more than positive for everyone, even if no one, neither in the East nor in the West has managed to match the performance of the Kospi of Seoul which is set to close the year with a record increase: +72,56%. In Europe, the record goes to Madrid Stock Exchange, unreachable with its +49% since the beginning of 2025. And Milan? Driven by defense stocks and financial companies involved in the banking game, the Ftse Mib achieved one of the best performances in the Old Continent, closing 2025 with a 32% increase.
European stock markets: Madrid tops the list, Milan and Frankfurt top the list
With two sessions to go until the end of the year, the European podium is already established: Madrid is the queen of the continental stock exchanges, followed by Business Square In 2025, for the third consecutive year, the Milan stock exchange recorded one of the best performances among European stock markets. Last year, the Milan stock exchange ranked third, and in 2023, it topped the podium with a 28% gain. Furthermore, for the fourth consecutive year, the FTSE MIB index outperformed the Stoxx Europe 600 index.
And all the others? Moving forward with the continental ranking, the bronze medal is Frankfurt (+22%) which leaves the rest of the markets behind. The stock exchanges are further behind Zurich (+14,1%) and the Nordic countries, while Amsterdam It is the tail light (+7,14%). Far from the top Paris (+9,79%), held back by the political crisis and the volatile performance of the luxury sector triggered by US tariffs.
Milan: Fincantieri reigns supreme, banks hit record highs, and Telecom Italia rises again.
The increases in Madrid and Milan, although of different magnitude, have common roots. In both cases, what stands out above all the others are banking and insurance sector stocks, which represent approximately 40% of the total capitalization of the blue chip index of the two markets and which this year have been affected by the risk fever.
"The first half of the year was impacted by uncertainty following the announcement of US tariffs on European imports, culminating in Liberation Day on April 2. Despite this backdrop of global uncertainty, European stock markets still performed better thanks to the strength of more domestic sectors, less impacted by the tariffs," emphasizes Chiara Robba, Head of LDI Equity at Generali Asset Management.
“Big banks like Unicredit and Intesa Sanpaolo have played a decisive role this year too, as have the smaller banks, supported by the consolidation of the sector which led Banca Mps to conquer Mediobanca and Bper to take over Banca Popolare di Sondrio", he comments. Reuters.
Looking at the percentages, since the beginning of the year Unicredit – which has become the stock with the highest capitalisation on the Milan Stock Exchange – marks a rise of almost 82%, while Intesa Sanpaolo up 52%. They're doing even better Pop Sondrio (+ 102%) and Bper (+88%). Even more stellar are the increases in banking stocks on the Madrid stock exchange, with Banco Santander which has advanced by 133% since January 1st and bbva +125% despite the failure of the takeover bid for Banco Sabadell.
Record performance also for the defense titles. Not by chance, Fincantieri is the queen of the Ftse Mib with a rise of 145%. They are also defending themselves wellIveco, which marks +101% and Leonardo (+91%), thanks to strong investor buying, driven primarily by growing global geopolitical tensions, triggered by recent conflicts in the Middle East and Ukraine. In Iveco's case, it's also worth noting the sale of its defense business to Leonardo and the simultaneous acquisition of the rest of the company by India's Tata Motors.
Eyes up too Tim which, after years of disappointing performance, managed to surprise the market in 2025, achieving a 110% increase "thanks to changes in corporate governance and strategic restructuring, including the increase in Poste Italiane's stake in the capital", underlines the Kepler Cheuvreux study.
Among the worst stocks of the year on the Ftse Mib we find Amplifon (-45%) and the big car companies, with Stellantis and Ferrari which dropped by 25% and 22% respectively, weighed down by the crisis that has hit the sector at a European level.
US stock markets
Despite the recent and increasingly loud fears about a possible bubble, it can only be the Nasdaq the best index of the US stock market. Driven by Nvidia (+ 40%), first stock in the world to reach a market capitalization of 5 trillion, ecosystem (+ 16%)Amazon (+ 6%) and Apple (+9,8), but also from Palantir (+ 157%) and Oracle (+19%), the US technology index has risen by more than 22% since the beginning of the year. Tariffs, controversies on the Fed and the longest shutdown ever have not dampened the other two main indexes either, which have both recorded double-digit increases since January 1st: +17,8% for the S & P 500, +14,5% for the Dow-Jones.
Asian Stock Exchanges
At the top of the world, as mentioned, there is the Kospi of Seoul which has gained over 72% in value since the beginning of the year, rising to 4.129 points, thanks mainly to the rally driven by chipmakers. To understand the optimism reigning in the South Korean market, just consider that last November Nvidia announced that will supply the Seoul government and giants such as Samsung and Hyundai with 260 of its most advanced chipsBut the price is also being boosted by the newfound political stability following the attempted coup d'état in late 2024 by former President Yoon Suk Yeol. In just a few months, however, the situation has completely changed: since June, the new President Lee Jae Myung has managed to calm spirits and smooth over differences with the United States, convincing Trump to reduce tariffs on Korean-made products from 25% to 15%.
Staying in Asia, the performances of the other stock markets are also very respectable: +30% for the Shenzhen, +28,7% for the Hang Seng Hong Kong and +18% for the Stock Exchange Shanghai in China. The Tokyo Stock Exchange is also positive: the Nikkei it has increased by 27,2% since the beginning of the year.
