Cautious start for European stock markets, the FTSE MIB opens in positive territory

Indices

Major European indices are maintaining robust levels, with most benchmarks trading near or just below their record highs. The FTSE MIB Index (FTSEMIB.MI) is currently at 43278.58, showing a slight gain and a strong long-term trend signal, which reflects renewed institutional buying interest, especially in banking and energy sectors. The DAX Performance Index (^GDAXI) stands at 24056.91, exhibiting a minor decline and a flat micro-trend, indicating near-term consolidation after recent advances. France’s CAC 40 (^FCHI) is quoted at 8151.53, with a marginal decrease and a flat trend, signaling market indecision despite proximity to its year high.

The FTSE 100 (^FTSE) trades at 9740.17, slightly lower, and also maintains a flat trend, reflecting investor caution after recent rallies. Spain’s IBEX 35 (^IBEX) posts at 16037.7, virtually unchanged with a flat micro-trend, suggesting a pause after earlier gains. The Euro STOXX 50 (^STOXX50E) is at 5689.77, with a strong long-term bullish trend, which may indicate continued sector leadership from large-cap Eurozone names. This blend of strong long signals on the FTSE MIB and Euro STOXX 50, and flat signals across the DAX, CAC 40, FTSE 100, and IBEX 35, suggests a selective bullishness in risk assets while broad market participants await further catalysts.

Stocks

Sector rotation is a key theme, with basic resources and banking stocks outperforming, while autos and technology show relative weakness. Steelmakers such as ArcelorMittal, Aperam, Thyssenkrupp, and SSAB have each advanced over 3, driven by European Commission policy changes on steel import quotas. Conversely, BMW (BMW:GR) declined 8.9 after a downward earnings revision, and technology leaders like ASML and ASMI posted modest losses due to renewed concerns over U.S. chip export restrictions.

French banks—Société Générale (GLE), Crédit Agricole (ACA), and BNP Paribas (BNP)—have registered declines, adding pressure to the CAC 40 amid ongoing political and regulatory risks. Energy stocks such as BP, Shell, Aker BP, and Equinor have outperformed, with gains of 2.5, reflecting investor preference for defensives amid geopolitical risk.

Economic News

Recent economic releases continue to shape sentiment and sector allocation. Spain’s Industrial Production YoY for August was reported at 3.4, outperforming both the prior value and estimates, bolstering the IBEX 35. In contrast, Spain’s trade balance for August deteriorated to -6, a significant drop that may explain recent IBEX hesitation. Euronext posted record fixed-income trading revenues in Q1 2025, underlining robust investor activity and market volatility. The resignation of the French Prime Minister led to a -1.72269 and a 0.7 in the euro, amplifying political risk and adding to market volatility.

Economic Events

Key macro events this week include the release of Eurozone Industrial Production and GDP data, Germany’s ZEW Economic Sentiment Index, and France’s CPI. Central bank meeting minutes from both the Federal Reserve and the European Central Bank are highly anticipated, with the potential to clarify the interest rate outlook and guide near-term risk appetite. Spanish government bond auctions are also on the calendar, offering insight into sovereign funding costs, though their immediate market impact is expected to be minimal. The upcoming EU Consumer Confidence reading and U.S. Consumer Price Index data may further influence cross-asset flows and sector allocation strategies.

Market Sentiment

Market sentiment across European equities is cautiously optimistic but highly responsive to sectoral rotation and geopolitical developments. Sustained inflows into blue-chip indices—particularly the Euro STOXX 50—are driven by expectations of improving credit conditions and supportive central bank stances. Outperformance in basic resources and banking 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, especially in momentum-driven and resource-heavy indices.

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