European stock markets rise, driven by Paris (+2.6%); luxury and Tim shine in Milan

Indices

The main European indices are exhibiting resilience and upward momentum amid robust earnings and macroeconomic optimism. The DAX Performance Index (^GDAXI) is trading at 24288.31, up 0.21195, signaling fresh all-time highs. The CAC 40 (^FCHI) has surged to 8119.57, a 2.52474, reflecting a significant boost from the luxury sector. The FTSE 100 (^FTSE) stands at 9433.56, slightly down by -0.20322, but remains close to record highs. The IBEX 35 (^IBEX) is up at 15671.8, advancing 0.54791. The Euro STOXX 50 (^STOXX50E) currently trades at 5631.98, up 1.43965, benefiting from a strong upward trend. These movements suggest that European equities continue to attract buyers, particularly in sectors with positive earnings momentum. Most index micro-trend signals are classified as FLAT, except for the Euro STOXX 50, which shows a STRONG_LONG trend—indicating potential leadership in the region’s risk rally.

Stocks

The session’s focus is on large-cap names driving sectoral outperformance. LVMH (MC) has soared by over 12 after strong demand signals from China, marking its best single-day gain in nearly two years and igniting a rally across luxury peers such as Hermes (RMS), L'Oréal (OR), Richemont (CFR), and Moncler (MONC), which climbed 2.7 to 7.2. ASML Holding (ASML) rose 3.5 after surpassing quarterly order expectations, supporting the technology sector’s advance. On the downside, Aurubis (NA) fell -7.1 due to a €500 million exchangeable bond offer by Salzgitter, pointing to sector-specific volatility. These moves highlight opportunities for momentum trading in outperforming sectors, while caution is warranted in names facing corporate actions or dilution risks.

Economic News

Recent macroeconomic developments are shaping the trading landscape. The International Monetary Fund (IMF) has warned investors about the heightened risk of a “disorderly” global market correction, citing overvalued asset prices fueled by AI enthusiasm and increasing geopolitical and fiscal risks. Despite this warning, European equities have shrugged off concerns as strong earnings and the anticipation of Federal Reserve rate cuts have dominated sentiment. In France, the government’s delay of the pension reform until after 2027 has eased political uncertainty, reflected in a drop in 10-year OAT yields by 6.2 to 3.404, improving market confidence.

Economic Events

Major scheduled events include key earnings releases from leading European corporations such as LVMH (MC) and ASML Holding (ASML), both of which are expected to set the tone for sector and index performance. Investors are also closely monitoring upcoming inflation and employment data across Europe, as these could influence central bank policy expectations and short-term equity trends. The IMF’s alert about global vulnerability is likely to keep risk management in focus, especially ahead of these data points.

Market Sentiment

Overall sentiment across European markets is bullish, underpinned by positive earnings momentum and the prospect of looser US monetary policy. The luxury and technology sectors are clear leaders, signaling strong risk appetite. However, the IMF’s warnings about valuations and potential market corrections inject a note of caution, suggesting that while the rally may persist in the near term, traders should remain vigilant to possible reversals tied to macroeconomic or geopolitical shocks.

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