European markets close flat, in the absence of cues from Wall Street. Puma continued its rally, approaching an 19% gain

Indices

Major European indices are exhibiting a pattern of consolidation and resilience, with several benchmarks trading near all-time or multi-year highs. The FTSE MIB Index (FTSEMIB.MI) is currently at 43222.88, showing a 0.21461 and maintaining a STRONG_LONG trend, which underscores robust institutional flows, particularly into banking and energy sectors. The DAX Performance Index (^GDAXI) stands at 23759.53, up slightly with a 0.14039 and reflecting a FLAT micro-trend, suggesting a phase of consolidation following recent advances.

France’s CAC 40 (^FCHI) is trading at 8099.47, with a 0.03754741 and a FLAT trend, indicating investor caution amid ongoing political uncertainty. The FTSE 100 (^FTSE) is at 9693.93, showing a 0.02424785 and also maintaining a FLAT trend, reflecting a tactical pause as markets digest recent gains and policy developments.

Spain’s IBEX 35 (^IBEX) prints 16361.8, nearly unchanged with a 0.00427844, and continues to trade above key moving averages, indicating positive longer-term momentum. The Euro STOXX 50 (^STOXX50E) stands at 5653.91, slightly lower on the day with a -0.02952836, but maintaining a STRONG_LONG bias that underlines continued bullish sentiment in Eurozone blue chips.

Stocks

Across major indices, sector rotation is a dominant theme. In the FTSE MIB, banking and basic resources stocks continue to outperform, with names like Bper Banca and Eni SpA among the top gainers. Conversely, technology and automotive sectors are experiencing pressure, with Nexi and Stellantis NV among the top decliners. In the DAX, Deutsche Boerse and Rheinmetall AG are notable gainers, while E.ON SE and Siemens Healthineers have softened.

Spanish banks Sabadell (SABE.MC) and Caixabank (CABK.MC) stand out with impressive year-to-date returns of 67 and 47, bolstering the resilience of the IBEX 35. Steelmakers such as ArcelorMittal and Aperam have each advanced over 3, supported by favorable changes in steel import quotas. On the downside, automotive and tech stocks such as BMW and ASML are under pressure due to weak earnings and renewed chip export restrictions.

Economic News

Recent macroeconomic data present a mixed but largely constructive backdrop for European markets. Spain’s Q3 GDP growth slowed to 0.6, down from 0.8, and year-over-year retail sales eased to 4.2, signaling some cooling in consumer demand. Nevertheless, Eurozone consumer confidence improved by 0.7 to -14.2, surpassing expectations and supporting consumption-driven sectors. Inflation remains contained, with the Eurozone CPI at 2.1, lowering pressure on the European Central Bank for immediate policy tightening.

Economic Events

The week is marked by a busy macroeconomic calendar, including upcoming releases of Eurozone Industrial Production, GDP figures, Germany’s ZEW Economic Sentiment Index, and France’s Consumer Price Index. In Spain, releases for the Producer Price Index, Consumer Confidence, and Retail Sales are anticipated, with these data points expected to influence sentiment and directional moves, especially in rate-sensitive and consumer sectors. Central bank meetings from the European Central Bank and the U.S. Federal Reserve remain in focus, with the potential to drive volatility across asset classes.

Market Sentiment

Sentiment across European equities is best described 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, fostering a tactical, sector-rotational approach among investors. While the technical and macroeconomic backdrops remain supportive of further upside, vigilance is warranted 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.