Piazza Affari opens lower, tracking the downward trend across European markets

Indices

Major European stock indices are trading close to their annual or historical highs, reflecting sustained institutional support but also sector-specific caution. The FTSE MIB Index (FTSEMIB.MI) is currently at 43133.36, down -0.29816 for the day but maintaining a pronounced "strong long" technical trend. This persistent upside momentum underscores resilient demand for Italian equities, particularly in banking and energy. The DAX Performance Index (^GDAXI) trades at 23810.82, slipping -0.57743, and showing a flat trend, indicative of near-term consolidation after recent gains.

France’s CAC 40 (^FCHI) stands at 8039.3, down -0.34992, also reflecting a flat trend as investors weigh political and regulatory uncertainties. The FTSE 100 (^FTSE) is at 9699.39, marginally lower by -0.16027, with energy and finance gains offset by broad market caution. Spain’s IBEX 35 (^IBEX) sits at 15943.8, down -0.57744, reflecting pressure after mixed macroeconomic data. The Euro STOXX 50 (^STOXX50E) prints 5623.47, down -0.64892, but sustains a strong long technical trend, suggesting robust conviction in Eurozone blue chips. Buy signals persist for the FTSE MIB and Euro STOXX 50, while other indices indicate a period of consolidation and range-bound trading.

Stocks

Sector rotation is the prevailing theme, with banking and basic resources leading outperformance. Steelmakers such as ArcelorMittal (MT:MT), Aperam (APAM.AS), Thyssenkrupp (TKAG.DE), and SSAB (SSABa.ST) have each advanced by over 3 after favorable changes to European steel import quotas. Spanish banks like Sabadell (SABE.MC) and Caixabank (CABK.MC) have delivered outstanding year-to-date returns of 67 and 47, supporting IBEX 35 resilience. Conversely, automotive and technology sectors are under pressure; BMW (BMW:GR) fell 8.9 after a disappointing earnings outlook, 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 reported declines, which has contributed to a defensive posture within the CAC 40.

Economic News

Recent economic data continues to influence sentiment and sector allocation. In Spain, Q3 GDP growth slowed to 0.6 from 0.8, slightly tempering enthusiasm for IBEX 35 constituents. Retail sales year-over-year in September softened to 4.2 from 4.7, indicating a modest cooling in consumer demand. However, Eurozone consumer confidence improved by 0.7 to -14.2, surpassing expectations and providing a firmer foundation for consumption-driven sectors. The European Central Bank has kept its deposit rate at 2, reinforcing expectations for stable credit conditions into 2025.

Economic Events

This week is marked by several high-impact macroeconomic releases that could shape market volatility and direction. Key data includes Eurozone Industrial Production and GDP figures, the German ZEW Economic Sentiment Index, and France’s Consumer Price Index, which will help gauge regional growth and inflation trends. Central bank policy meetings, notably from the European Central Bank and the U.S. Federal Reserve, are in focus and may influence rate-sensitive sectors and overall risk appetite. Spanish government bond auctions, with recent results indicating easing funding costs, continue to provide support to both sovereign debt and risk assets. The upcoming EU Consumer Confidence reading is estimated at 85, up from 82.9, potentially signaling further improvement in sentiment.

Market Sentiment

Overall sentiment across European equities remains cautiously optimistic, with sustained capital inflows into blue-chip benchmarks such as the Euro STOXX 50 and FTSE MIB, underpinned by stable credit expectations and accommodating central bank policies. Outperformance in basic resources and banking sectors is helping to offset persistent weakness in autos and technology, suggesting a tactical, sector-rotational approach among investors. The technical and economic backdrop is constructive, supporting further upside in leading benchmarks, although near-term caution is warranted ahead of critical policy and macroeconomic data announcements.

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