European markets flat, Milan bourse lacks momentum as Wall Street closes for Thanksgiving. Puma jumps 13%

Indices

Major European indices are currently demonstrating a blend of resilience and tactical consolidation, with several benchmarks trading near record or multi-year highs. The FTSE MIB Index (FTSEMIB.MI) is quoted at 43201.31, showing a modest gain and maintaining a STRONG_LONG trend. This persistent upward momentum reflects robust institutional flows, particularly into banking and energy sectors. The DAX Performance Index (^GDAXI) currently stands at 23770.11, with a slight increase, and exhibits a FLAT short-term trend, indicating a consolidation phase after recent advances.

France’s CAC 40 (^FCHI) is trading at 8094.38, with a minor drop and a FLAT micro-trend, reflecting investor caution amid political uncertainty. The FTSE 100 (^FTSE) is at 9679.4, slightly lower on the day and also showing a FLAT trend, suggesting a tactical pause as markets digest recent gains and policy developments. Spain’s IBEX 35 (^IBEX) prints 16360.1, nearly unchanged, and continues to trade above key moving averages, indicating constructive longer-term momentum.

The Euro STOXX 50 (^STOXX50E) stands at 5648.23, slightly lower intraday but maintaining a STRONG_LONG bias. This persistent strength underlines continued bullish conviction in Eurozone blue chips. The technical backdrop for both the FTSE MIB and Euro STOXX 50 signals ongoing buy opportunities, while other indices’ flat trends suggest a wait-and-see stance by investors.

Stocks

Sector rotation remains the dominant theme in European equities. The banking and basic resources sectors are at the forefront, with Spanish banks Sabadell (SABE.MC) and Caixabank (CABK.MC) posting impressive year-to-date returns of 67 and 47, respectively, supporting the resilience of the IBEX 35. Steelmakers such as ArcelorMittal, Aperam, Thyssenkrupp, and SSAB have each advanced over 3, buoyed by favorable regulatory shifts in steel import quotas.

On the other hand, the automotive and technology sectors face pressure. BMW (BMW:GR) has dropped 8.9 after a weak earnings outlook, and ASML along with ASM International are challenged by renewed chip export restrictions. In the French market, Société Générale, Crédit Agricole, and BNP Paribas have also reported declines, weighing on the CAC 40’s performance. High-momentum opportunities are observed in names like SmartKem, Inc., which surged 17.36111, while laggards such as Biodexa Pharmaceuticals Plc dropped -16.08696, underscoring the current bifurcation in sector performance.

Economic News

Recent macroeconomic data present a mixed but generally constructive backdrop for European markets. Spain’s Q3 GDP growth slowed to 0.6 from 0.8, and year-over-year retail sales growth softened to 4.2, down from 4.7, pointing to some cooling in consumer demand. However, Eurozone consumer confidence improved by 0.7 to -14.2, surpassing expectations and lending support to consumption-driven sectors.

Additionally, inflation remains contained, with the latest Eurozone CPI at 2.1, which reduces pressure on the European Central Bank for immediate policy tightening. The European Commission has revised its 2025 eurozone growth forecast upward to 1.3, up from 0.9, citing strong export growth in anticipation of upcoming tariff hikes.

Economic Events

This week features a busy macroeconomic calendar with several key releases poised to set the tone for risk assets. Investors are watching for Eurozone Industrial Production, GDP figures, Germany’s ZEW Economic Sentiment Index, and France’s Consumer Price Index. In Spain, attention is on the Producer Price Index, Consumer Confidence, and Retail Sales, with upcoming figures expected to impact market direction, especially in rate-sensitive and consumer sectors. Central bank meetings, notably from the European Central Bank and the U.S. Federal Reserve, remain in focus, as their statements have the potential to drive volatility and influence sector performance across European markets.

Market Sentiment

Overall sentiment across European equities is best characterized as cautiously optimistic. Sustained capital inflows into blue-chip indices like the Euro STOXX 50 and FTSE MIB are underpinned by stable credit conditions and expectations of accommodative central bank policies. Outperformance in banking and basic resources is helping to offset persistent weakness in autos and technology, encouraging a tactical, sector-rotation approach among investors. While technical and macroeconomic backdrops remain supportive of further upside in leading benchmarks, vigilance is advised ahead of high-impact economic and policy announcements, as global uncertainties and political developments could quickly alter the risk landscape.

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