Indices

At the close of trading today, major European indices presented a mixed picture, reflecting divergent sector performances and evolving market sentiment. The FTSE MIB (FTMIB) closed at 42.010,00, marking its highest level since June 2008, which suggests robust momentum within Italian equities. The DAX Performance Index (DAX) finished at 24.229,58, indicating strong performance in German blue chips.

France's CAC 40 (CAC) ended at 7.918,00, reflecting resilience amid French political shifts. The FTSE 100 (FTSE100) closed at 9.426,85, contributing to a 16.83 gain and signaling investor confidence in UK equities.

The IBEX 35 closed at 15.474,21, slightly lower on the day, while the EURO STOXX 50 wrapped up at 5.527,25, highlighting ongoing strength in the eurozone’s largest companies. Micro-trend signals across most indices are reported as flat, except for the EURO STOXX 50, which is in a strong long trend, suggesting continued bullishness for the eurozone benchmark.

Stocks

Today’s market action spotlighted sector-specific movements. Steelmakers such as ArcelorMittal (MT:MT), Aperam (APAM.AS), Thyssenkrupp (TKAG.DE), and SSAB (SSABa.ST) each advanced over 3, benefiting from the European Commission’s proposal to reduce tariff-free steel import quotas. This shift propelled the basic resources index upwards by 0.7 and underscored steel as a top-performing segment.

Conversely, the automotive sector lagged, with BMW (BMW:GR) shares sinking 8.9 following a reduction in its 2025 earnings outlook due to U.S. tariff changes and weaker Chinese demand. This drag also weighed on peer stocks like Mercedes (MBGn.DE) and the broader auto index, which declined 2.3. Technology names including ASML (ASML.AS) and ASMI (ASMI.AS) lost 0.4 amid renewed U.S. chip export restrictions talk. These mixed sector performances suggest selective trading strategies, favoring basic resources and banking while exercising caution with autos and technology.

Economic News

Markets reacted to the European Commission’s announcement on steel import quotas with significant gains in steelmakers, reflecting the impact of policy on sectoral performance. The banking sector also drew attention after HSBC (HSBA.L) announced the privatization of its Hong Kong subsidiary, causing its shares to decline 6.5 and exerting pressure on banking indices. In France, despite the resignation of Prime Minister Sébastien Lecornu, the CAC 40 remained resilient, suggesting investor optimism about future fiscal agreements.

Economic Events

Looking ahead, investors are focused on upcoming central bank communications, with both Federal Reserve and European Central Bank meeting minutes expected later in the month. These events could introduce fresh volatility or direction, particularly for currency and rate-sensitive sectors. Further, the ECB’s scheduled speeches and the release of key economic sentiment and industrial production data in the coming days are likely to influence risk appetite and sector rotation.

Market Sentiment

Overall sentiment across European markets remains cautiously optimistic. The strong momentum in steel and banking sectors is counterbalanced by weakness in autos and technology, indicating a selective risk-on posture. The record or near-record closes for several indices signal robust underlying confidence, but the presence of sector-specific shocks, such as BMW’s forecast cut, highlights ongoing vulnerability to macro and policy developments. Investors appear to be rotating towards sectors poised to benefit from regulatory changes, while remaining alert to global trade and political risks.

Please note that the analysis is for informational purposes only and does not constitute financial advice. Users should conduct their own research.