European markets close in positive territory: Milan’s FTSE MIB hits highest level since 2001; luxury and automotive sectors rebound

Indices

Major European indices are exhibiting robust performance, with several benchmarks establishing or testing new annual highs. The FTSE MIB Index (FTSEMIB.MI) is trading at 44370.1, registering a gain of 474.43 or 1.08081, and maintains a "strong long" technical signal, confirming persistent bullish momentum and institutional inflows, particularly into banking and energy sectors. Germany's DAX Performance Index (^GDAXI) stands at 24073.33, up 113.34 or 0.47304, with a flat short-term trend, signaling consolidation near record highs.

France's CAC 40 (^FCHI) is at 8159.41, up 103.9 or 1.2898, but with a flat trend, reflecting investor caution amid political developments in France. The FTSE 100 (^FTSE) has reached a historical high at 9899.93, increasing 112.78 or 1.15233, supported by gains in mining and financials, though the short-term technical trend remains flat.

Spain’s IBEX 35 (^IBEX) is at 16364.6, up 182.1 or 1.12529, trading just below its year peak and in a flat micro-trend, indicative of cooling momentum after recent macroeconomic releases. The Euro STOXX 50 (^STOXX50E) prints 5721.96, up 57.5 or 1.0151, maintaining a "strong long" trend, which continues to attract broad-based inflows into eurozone blue chips.

This technical landscape suggests favoring momentum and breakout strategies in the FTSE MIB and Euro STOXX 50, while the DAX, CAC 40, FTSE 100, and IBEX 35 are likely to experience range-bound, selective trading in the near term.

Stocks

Sector rotation is the dominant theme across European equities. Banking and basic resources stocks are leading gains, with steelmakers such as ArcelorMittal (MT:MT), Aperam (APAM.AS), Thyssenkrupp (TKAG.DE), and SSAB (SSABa.ST) each advancing by over 3, buoyed by favorable changes to European steel import quotas. Spanish banks Sabadell (SABE.MC) and Caixabank (CABK.MC) have delivered impressive year-to-date returns of 67 and 47, supporting IBEX 35 resilience.

In contrast, the automotive sector is under pressure, with BMW (BMW:GR) down 8.9 after a weak earnings outlook, and technology names like ASML (ASML.AS) and ASM International (ASMI.AS) facing renewed chip export restrictions. French banks Société Générale (GLE), Crédit Agricole (ACA), and BNP Paribas (BNP) have reported declines, adding a defensive tone to the CAC 40. Among trending stocks, InflaRx N.V. (IFRX) and Captivision Inc. (CAPT) have posted notable gains of 17.72152 and 15.9143, highlighting tactical opportunities in the biotech and technology spaces, while Endava plc (DAVA) and Innate Pharma S.A. (IPHA) have suffered sharp declines.

Economic News

Recent macroeconomic releases are influencing sector allocation and sentiment. In Spain, GDP growth rate quarter-over-quarter for Q3 was 0.6, a slowdown from 0.8, which may explain the moderation in the IBEX 35. Retail sales year-over-year in September softened to 4.2 from 4.7, indicating a tempering in consumer demand. Eurozone consumer confidence improved by 0.7 to -14.2, exceeding expectations and pointing to a firmer outlook for consumer-related sectors. Political instability in France, including the resignation of the prime minister, has heightened headline risk for French assets.

Economic Events

This week is rich with high-impact macroeconomic releases that could drive further volatility and direction. Key data points include Eurozone Industrial Production and GDP figures, Germany’s ZEW Economic Sentiment Index, and France’s Consumer Price Index, each crucial for assessing regional growth and inflation trends. Central bank policy meetings, particularly from the European Central Bank and the U.S. Federal Reserve, are highly anticipated and could affect rate-sensitive sectors and overall risk appetite. Spanish government bond auctions, with recent results showing easing funding costs, further support sovereign debt and risk assets. The upcoming EU Consumer Confidence reading is estimated at 85, up from 82.9, potentially signaling incremental improvement in sentiment.

Market Sentiment

Overall sentiment across European equities is characterized by cautious optimism. Sustained capital inflows into blue-chip indices—especially the Euro STOXX 50 (^STOXX50E) and FTSE MIB Index (FTSEMIB.MI)—are underpinned by expectations of accommodating central bank policies and favorable credit conditions. The outperformance of basic resources and banking sectors is helping offset persistent weakness in autos and technology, signaling a tactical, sector-rotational approach among investors. Despite ongoing geopolitical and regulatory uncertainties, the technical and macroeconomic backdrop remains constructive, supporting the case for further upside in leading European benchmarks, though near-term caution is warranted ahead of key data and policy announcements.

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