Europe’s markets close in positive territory; Stellantis adds 3% to extend its rally

Indices

European equity markets continue to trade near multi-year highs, reflecting a blend of resilience and selective bullish momentum across key regional benchmarks. The FTSE MIB Index (FTSEMIB.MI) is currently quoted at 43511.36, marking a daily gain of 0.30133 and sustaining a strong upward “STRONG_LONG” micro-trend. This momentum is underpinned by sector rotation into banking and energy stocks, suggesting persistent institutional inflows.

The DAX Performance Index (^GDAXI) is trading at 23904.28, advancing by 0.88872, yet the short-term trend is “FLAT,” reflecting market consolidation after strong prior gains. France’s CAC 40 (^FCHI) stands at 8129.52, up 0.52056 but also trending “FLAT,” highlighting investor caution amid persistent political and economic uncertainties.

The FTSE 100 (^FTSE) in London is at 9723.95, with a modest 0.32893 increase and a “FLAT” trend, suggesting a tactical pause as markets digest recent gains and await fiscal signals from the UK. Spain’s IBEX 35 (^IBEX) prints 16733.4, up 0.89053 and hovering near record highs, benefiting from robust performances in mining and healthcare, though its micro-trend is “FLAT,” indicating a consolidation period.

The Euro STOXX 50 (^STOXX50E) is at 5724.37, rising by 0.52348 and displaying a “STRONG_LONG” buy signal, underscoring ongoing bullish conviction in pan-European blue chips. Technical signals continue to favor long positions in the FTSE MIB and Euro STOXX 50, while the other indices’ flat trends reflect a wait-and-see stance.

Stocks

Stellantis N.V. (STLA.MI) remains a central focus in today’s trading, closing at 15.412 EUR, with its short-term trend rated as “STRONG_LONG.” The company has recently announced a recall of 72,509 Ram vehicles in the U.S. due to a software malfunction, potentially impacting near-term sentiment. Additionally, a strategic pivot towards hybrid vehicles in North America has been unveiled to stem market share erosion, signaling management’s adaptability.

Stellantis’ involvement in the restructuring of the Symbio hydrogen joint venture, following its exit from hydrogen fuel cell technology, reflects an ongoing realignment of its innovation strategy. UBS has upgraded Stellantis’ stock to ‘Buy’ with a price target of 13.94, citing confidence in the North American turnaround. The company’s share price also benefited from positive sentiment after the U.S. administration indicated potential rollbacks of fuel economy rules.

Elsewhere, sector rotation is evident within European equities. Banks and basic resources are outperforming, while autos and technology face pressure from regulatory and earnings headwinds. Stocks like Inditex (ITX.MC) have surged on strong sales numbers, highlighting opportunities in the retail space.

Economic News

Recent economic data has set a cautiously constructive backdrop for European equities. Eurozone inflation remains subdued at 2.1, aligning with ECB targets and reducing immediate pressure for policy tightening. Consumer confidence in the eurozone improved by 0.7, supporting consumption-driven sectors.

Spain’s GDP growth rate slowed to 0.6, while retail sales softened to 4.2, indicating persistent, albeit slower, economic expansion. The European Commission’s economic sentiment indicator edged up, reflecting slight improvement in business and consumer outlooks.

On the regulatory front, the European Commission’s proposals for capital markets reform and harmonized insolvency rules may enhance cross-border investment and market integration, potentially fostering a more supportive environment for European equities.

Economic Events

The macroeconomic calendar is dense, with several impactful events ahead. 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 monitored for their influence on the IBEX 35.

The European Central Bank’s next meeting, scheduled for December 18, 2025, is pivotal, as updated inflation forecasts and potential policy adjustments could shift market risk appetite. Furthermore, several ECB official speeches are expected to provide additional insight into the eurozone’s monetary policy trajectory and inflation outlook.

Market Sentiment

Sentiment across European markets is cautiously optimistic. Sustained capital inflows into blue-chip indices like the Euro STOXX 50 and FTSE MIB are supported by expectations of accommodative central bank policies and stable credit conditions. Outperformance in banking and basic resources sectors is helping offset persistent weakness in autos and technology.

While technical and macroeconomic backdrops remain supportive of further upside, vigilance is warranted ahead of high-impact economic and policy announcements. Investors are tactically rotating between sectors, maintaining a risk-on bias in select indices, but remain alert to potential shifts in central bank tone and global political developments that 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.