Milan ends the day higher, in line with the positive trend across European markets

Indices

Major European indices are holding near or just below their record highs, reflecting resilience and continued institutional inflows. The FTSE MIB (FTMIB) is currently trading at 41813, demonstrating a robust upward trend, particularly supported by gains in banking and energy stocks. The DAX Performance Index (DAX) stands at 24292.77, with a daily gain of 1.93773, indicating strength among German blue chips. France’s CAC 40 is quoted at 8206.07, with a modest advance and ongoing sensitivity to political and sector-specific developments.

The FTSE 100 (FTSE100) trades at 9414.34, showing steady momentum driven by energy and financials. Spain’s IBEX 35 is at 15850.9, slightly off its peak but retaining a bullish undertone. The Euro STOXX 50 is at 5687.08, with a strong long-term bullish trend signal, reflecting ongoing institutional demand for large-cap pan-European equities. Notably, the Euro STOXX 50 and IBEX 35 display buy signals, while other indices exhibit flat to cautiously positive short-term momentum. This movement suggests persistent risk appetite, especially for blue-chip and resource-heavy indices.

Stocks

Sector rotation is a dominant theme, with basic resources and banking outperforming while autos and technology lag. Steelmakers such as ArcelorMittal (MT:MT), Aperam (APAM.AS), Thyssenkrupp (TKAG.DE), and SSAB (SSABa.ST) have each advanced over 3, spurred by European Commission policy changes on steel import quotas. Conversely, automotive stocks are under pressure, with BMW (BMW:GR) falling 8.9 after revising its earnings outlook downward due to trade tensions and weaker demand.

Technology leaders like ASML (ASML.AS) and ASMI (ASMI.AS) posted modest losses in response to renewed U.S. chip export concerns. French banks—Société Générale (GLE), Crédit Agricole (ACA), and BNP Paribas (BNP)—have registered declines, impacting the CAC 40. Given these trends, trading strategies should emphasize strength in basic resources while exercising caution with auto and technology sectors.

Economic News

Recent economic data are influencing sentiment and sector allocation. Spain's Industrial Production YoY for August was reported at 3.4, outperforming both the previous value and estimates, which has supported the IBEX 35's momentum. Euronext’s record fixed-income trading revenues in Q1 2025 highlight robust market participation. In the policy sphere, the European Commission’s announcement on steel quotas has provided a significant boost to resource stocks, whereas French banking equities remain pressured by regulatory uncertainty and political risks.

Economic Events

This week features several pivotal macro events. The release of Eurozone Industrial Production and GDP data, Germany’s ZEW Economic Sentiment Index, and France’s CPI will be closely watched for signals on growth and inflation. Central bank meeting minutes from both the Federal Reserve and the European Central Bank could influence expectations for future rate moves and impact rate-sensitive sectors. Additionally, scheduled Spanish government bond auctions may offer insight into sovereign funding costs, though their immediate market impact is likely muted.

Market Sentiment

Market sentiment across European equities is cautiously optimistic. Sustained inflows into blue-chip indices—particularly the Euro STOXX 50—are propelled by expectations of improving credit conditions and supportive central bank stances. The outperformance of basic resources and banking sectors is counterbalanced by continued weakness in autos and technology, reflecting a tactical sector-driven approach. Political risks in France and regulatory uncertainty in banking present short-term headwinds, yet the overall technical backdrop remains constructive, favoring further upside for pan-European equities.

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