European stock markets start the week in positive territory, with the FTSE MIB leading the gains

Indices

Major European indices are maintaining elevated levels, trading at or near their annual or all-time highs, reflecting strong institutional support and persistent confidence in blue-chip equities. The FTSE MIB Index (FTSEMIB.MI) is currently trading at 43439.75, with a daily gain of 0.61246 and a pronounced strong-long technical trend, signaling robust momentum and persistent buying interest, particularly in Italian equities. The DAX Performance Index (^GDAXI) is at 24102.26, showing a gain of 0.60088 but exhibiting a flat micro-trend, which suggests investor caution and near-term consolidation after recent advances.

France’s CAC 40 (^FCHI) records 8128.46, with a marginal move of 0.09099786, also reflecting a flat technical trend amid domestic political shifts. The FTSE 100 (^FTSE) stands at 9731.82, up 0.14994, supported by strong performances in financials and energy, yet the flat trend denotes prudence after recent upward moves.

The IBEX 35 (^IBEX) is trading at 16103.9, up 0.44472, and continues to benefit from banking sector strength, though its flat trend shows a pause after surpassing previous records. The Euro STOXX 50 (^STOXX50E) prints 5681.98, gaining 0.35217 and signaling a strong-long technical trend, which reflects persistent institutional inflows and widespread confidence in large-cap eurozone equities.

Stocks

Stock market leadership is defined by sector rotation and divergent performance across industries. Banking and basic resources are leading the rally, with steelmakers such as ArcelorMittal (MT:MT), Aperam (APAM.AS), Thyssenkrupp (TKAG.DE), and SSAB (SSABa.ST) each advancing over 3 following favorable changes to European steel import quotas. Spanish banks Sabadell (SABE.MC) and Caixabank (CABK.MC) have posted impressive year-to-date gains of 67 and 47, supporting the sustained outperformance of the IBEX 35.

In contrast, autos and technology are under pressure: BMW (BMW:GR) has declined 8.9 after earnings disappointment, while ASML Holding N.V. (ASML) and ASM International (ASMI.AS) are weighed down by renewed chip export restrictions. French banks Société Générale (GLE), Crédit Agricole (ACA), and BNP Paribas (BNP) have also posted declines, contributing to softness in the CAC 40. This market action favors momentum and breakout strategies in banking and resources while advocating defensive or wait-and-see approaches in autos and tech due to persistent sector-specific headwinds.

Economic News

Recent economic data has set a tone of cautious optimism. Spain’s GDP Growth Rate QoQ (Q3) was 0.6, down from the previous 0.8, indicating some moderation in the IBEX 35’s pace. Spanish Industrial Production YoY (August) outperformed at 3.4 versus 2.7, supporting resilient manufacturing sentiment. Conversely, Spain’s trade balance deteriorated to -6 from -4.01, which could temper further upside in Spanish equities.

Eurozone consumer confidence improved by 0.7 to -14.2, exceeding expectations and signaling a firmer outlook for consumption-driven sectors. Sector performance is mixed: mining stocks are up 1.7, healthcare is up 0.4, while telecom and utilities are down -1 and -0.6 respectively, revealing a shift toward cyclicals.

Economic Events

This week features a dense macroeconomic calendar that could influence volatility. Key releases include Eurozone Industrial Production and GDP, Germany’s ZEW Economic Sentiment Index, and France’s CPI—all crucial for assessing the region’s growth and inflation prospects. Central bank meetings are in focus, with the European Central Bank scheduled to announce its interest rate decision on November 7, 2025, and the Federal Reserve meeting minutes also due, both of which could set the tone for liquidity conditions and risk appetite. Spanish government bond auctions and upcoming EU Consumer Confidence data are additional focal points, with a consensus estimate for Spanish confidence at 85, up from 82.9.

Market Sentiment

Overall market sentiment across European indices is characterized by cautious optimism. Capital continues to flow into blue-chip benchmarks, especially the Euro STOXX 50 and FTSE MIB, buoyed by expectations for stable credit conditions and supportive central bank policies. The sector-rotational approach is evident, with banks and basic resources outperforming, while autos and technology lag due to ongoing risks. Despite geopolitical uncertainties and regulatory headwinds, the technical and macroeconomic backdrop remains constructive, supporting the potential for further upside in leading indices. However, prudence is warranted as the market awaits key economic data and central bank guidance.

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