European close: major indices end the session little changed, hovering around parity

Indices

Major European indices are currently trading near record or multi-year highs, displaying a blend of resilience and tactical consolidation. The FTSE MIB Index (FTSEMIB.MI) is quoted at 43353.34, showing negligible change but maintaining a STRONG_LONG micro-trend, which signals persistent upward momentum, particularly in the banking and energy sectors. The DAX Performance Index (^GDAXI) stands at 23690.33, with a marginal decline and a FLAT short-term trend, indicating consolidation after recent advances.

France’s CAC 40 (^FCHI) is trading at 8080.23, posting a small gain and maintaining a FLAT micro-trend, which reflects investor caution amid political uncertainty. The FTSE 100 (^FTSE) is at 9696.25, nearly unchanged and continuing its FLAT trend, suggesting a tactical pause as markets digest recent gains and await UK fiscal signals. Spain’s IBEX 35 (^IBEX) prints 16610.8, up strongly and setting new record highs, supported by strength in the mining and healthcare sectors, though its micro-trend is FLAT, indicating a period of consolidation.

The Euro STOXX 50 (^STOXX50E) is at 5692.8 and demonstrates a STRONG_LONG signal, underlining ongoing bullish conviction in Eurozone blue chips. Technical signals favor continued buy opportunities in the FTSE MIB and Euro STOXX 50, while other indices’ flat trends suggest a wait-and-see approach by investors.

Stocks

Sector rotation remains prominent in European equities. The banking and basic resources sectors are at the forefront, exemplified by Spanish banks Sabadell (SABE.MC) and Caixabank (CABK.MC), which have delivered year-to-date returns of 67 and 47, respectively. Steelmakers such as ArcelorMittal, Aperam, Thyssenkrupp, and SSAB have each advanced more than 3, buoyed by favorable regulatory changes to steel import quotas.

Conversely, the automotive and technology sectors face pressure. BMW (BMW:GR) has declined 8.9 after a weak earnings outlook, while ASML and ASM International are challenged by renewed chip export restrictions. In France, Société Générale, Crédit Agricole, and BNP Paribas have reported declines, weighing on the CAC 40. Inditex (ITX.MC) stands out, surging 7 after strong winter sales, fueling the IBEX 35’s record performance.

Economic News

Recent macroeconomic data presents a mixed but constructive backdrop. Spain’s GDP growth rate has slowed to 0.6, down from 0.8, and retail sales year-over-year softened to 4.2. Eurozone consumer confidence improved by 0.7 points to -14.2, exceeding expectations and supporting consumption-driven sectors.

ECB Chief Economist Philip Lane has flagged "upside surprises" in eurozone inflation, challenging prior expectations for a decline in early 2026. The latest Eurozone CPI stands at 2.1, reducing immediate pressure for policy tightening. The European Commission has also presented a new "economic security doctrine" aimed at strengthening EU resilience in strategic sectors such as rare earths and semiconductors.

Economic Events

Looking ahead, the macroeconomic calendar is dense. Key releases include Eurozone Industrial Production, GDP figures for 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 will be closely watched for their impact on the IBEX 35 and related sectors. The European Central Bank’s upcoming meeting on December 18, 2025, is particularly pivotal, as updated inflation forecasts and potential policy adjustments could sway risk assets.

Market Sentiment

Overall sentiment across European equities is cautiously optimistic. Sustained capital inflows into blue-chip indices such as the Euro STOXX 50 (^STOXX50E) and FTSE MIB Index (FTSEMIB.MI) are supported by expectations of accommodative central bank policies and stable credit conditions. Outperformance in banking and basic resources sectors 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 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.