Germany's benchmark Dax share index closed at a near five-year high on Thursday, near the end of a year in which European equities have outpaced global and US rivals for the first time since the depths of the global economic crisis.
The resurgence in equities shows how investors have re-rated euro zone break-up risks following a pledge by Mario Draghi, European Central Bank president, to safeguard the euro zone's integrity.
European stocks are up almost 4 percent so far this quarter, while US equities are down 2 percent, according to their respective benchmark indices. Over the year so far Europe has now cantered past the U.S., with more than a 15 percent total return on the MSCI index compared with less than 14 percent in the US.
The rally remained intact even after gloomy ECB growth forecasts released following the central bank's interest rate-setting meeting in Frankfurt.
Read more: Germany Leads Resurgence in Europe Stocks
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