Europe closes higher in a calm session amid Wall Street’s closure and shortened Black Friday trading

Indices

Major European indices are currently exhibiting resilience, trading near record or multi-year highs with a mix of mild gains and consolidation. The FTSE MIB Index (FTSEMIB.MI) is posting at 43371.75, advancing by 0.35141, and maintains a STRONG_LONG trend, suggesting robust upward momentum particularly in banking and energy sectors. The DAX Performance Index (^GDAXI) is trading at 23859.21, up 0.38392, and exhibits a FLAT trend, indicating consolidation near highs. The CAC 40 (^FCHI) prints 8117.55, rising 0.22322, with a FLAT micro-trend, which reflects investor caution amid political uncertainty in France.

The FTSE 100 (^FTSE) stands at 9727.91, up 0.35053, showing resilience above key averages as traders await fiscal cues from the UK. Spain’s IBEX 35 (^IBEX) records 16385.8, with a gain of 0.14668, and continues to hold above both its 50- and 200-day moving averages, pointing to constructive long-term momentum. The Euro STOXX 50 (^STOXX50E) is at 5674.68, up 0.38049, and retains a STRONG_LONG signal, highlighting sustained bullish conviction in Eurozone blue chips. The prevailing technical setup indicates a tactical pause with upside potential if macroeconomic and policy risks remain contained.

Stocks

Sector rotation continues to dominate the European equity landscape. Banking and basic resources are outperforming, with Spanish banks Sabadell (SABE.MC) and Caixabank (CABK.MC) delivering year-to-date returns of 67 and 47, fueling the resilience of the IBEX 35. Steelmakers such as ArcelorMittal (MT:MT), Aperam (APAM.AS), Thyssenkrupp (TKAG.DE), and SSAB (SSABa.ST) each advanced over 3, supported by favorable steel import quota adjustments.

Conversely, the automotive and technology sectors are under pressure. BMW (BMW:GR) has dropped 8.9 after a weak earnings outlook, while ASML (ASML.AS) and ASM International (ASMI.AS) face renewed chip export restrictions. French banks Société Générale (GLE), Crédit Agricole (ACA), and BNP Paribas (BNP) have also reported declines, weighing on the CAC 40. High-momentum names such as SmartKem, Inc. (SMTK) recently surged 17.36111, while underperformers like Biodexa Pharmaceuticals Plc (BDRX) fell by -16.08696.

Economic News

Recent economic data show a mixed but constructive landscape. Spain’s GDP growth rate slowed to 0.6 from 0.8, and retail sales growth softened year-over-year to 4.2, down from 4.7, reflecting some cooling in consumer demand. On the inflation front, the European Commission expects Eurozone inflation to decline toward the ECB’s target, with forecasts of 2.1 and 1.9, while the budget deficit is expected to widen from 3.1 to 3.2. Eurozone consumer confidence improved by 0.7 points to -14.2, surpassing expectations and supporting sentiment in consumption-driven sectors.

Economic Events

The macroeconomic calendar for this week is dense. Key releases include Eurozone Industrial Production, GDP figures for both the region and Germany, Germany’s ZEW Economic Sentiment Index, and France’s Consumer Price Index. In Spain, upcoming data on the Producer Price Index, Consumer Confidence, and Retail Sales (YoY and MoM) will be closely watched for their influence on the IBEX 35 and related sectors. Central bank meetings—notably those of the European Central Bank and the U.S. Federal Reserve—are in focus and could sway rate-sensitive sectors and overall risk appetite. Additionally, Spanish government bond auctions continue to show easing funding costs, which supports sovereign debt and risk assets.

Market Sentiment

Overall sentiment across European equities remains cautiously optimistic. Sustained capital inflows into blue-chip indices such as the Euro STOXX 50 (^STOXX50E) and FTSE MIB Index (FTSEMIB.MI) are underpinned by stable credit conditions and expectations of accommodative central bank policies. Outperformance in basic resources and banking helps offset ongoing weakness in autos and technology, encouraging a tactical, sector-rotational approach among investors. The combination of technical resilience and supportive macroeconomic signals points to further upside potential in leading benchmarks, though heightened vigilance is warranted ahead of high-impact economic 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.