Annual Statistical Report
In 2025, European capital markets navigated another year shaped by persistent global geopolitical tensions, evolving monetary policy, economic uncertainty and escalating trade conflicts. Market sentiment was tempered by the heightened risk of sudden market corrections. According to ESMA[1], EU equity markets experienced exceptionally high volatility during the first four months, at levels not seen since the COVID-19-related market stress, but showed resilience throughout the first half of the year.
Against this backdrop, broader economic analysis suggest that the underlying fundamentals remained relatively supportive. Importantly, the European Economic Forecast (Autumn 2025)[2] noted that economic growth exceeded expectations in the first nine months and that conditions for modest but steady expansion remain in place. Nevertheless, the outlook continues to be highly uncertain, with downside risks prevailing1. Structural and macroeconomic vulnerabilities, together with ongoing geopolitical and policy uncertainty, could amplify market volatility, underpinning a cautious outlook for 2026.
Amid these challenges, the annual data submitted by FESE Members reflect how markets managed to navigate the turbulent conditions throughout 2025. On this note, market capitalisation increased despite fewer listed companies, while primary markets extended their recovery amid muted IPO activity, which remained above 2023 levels and was stronger in the second half of 2025. Order book trading picked up, exchange-traded derivatives showed mixed trends, and ETFs maintained momentum. Investment fund capitalisation rose despite fewer listings, and bond trading remained steady, though turnover was lower.
These trends are detailed in the FESE Annual Statistical Report, compiling data from FESE Members from January to December 2025.
[1] ESMA Report on Trends, Risks and Vulnerabilities No. 2, 2025
[2] Published by European Commission’s Directorate-General for Economic and Financial Affairs on 17 November 2025