European stock markets close weak and mixed, tracking Wall Street: focus on the Fed and Oracle’s earnings

Indices

European equity markets are displaying a mixed but broadly cautious tone as traders position themselves ahead of the upcoming U.S. Federal Reserve interest rate decision. The FTSE MIB (FTSEMIB.MI) is trading at 43.42K, reflecting a slight decline of -0.34, yet maintaining a strong upward micro-trend. This resilience suggests persistent bullish sentiment, especially if the index breaks above key resistance at 43,700, which could open the door to further gains.

The DAX Performance Index (^GDAXI) currently stands at 24.12K, down -0.19. The micro-trend is flat, and the index is trading below its 200-day moving average, indicating that bearish risks remain unless there is a sustained move above 24,500.

The CAC 40 (^FCHI) is at 8.01K, down -0.47, oscillating between its 50- and 100-day moving averages. This range-bound behavior reflects indecision among investors, with a breakout above 7,950 likely required to trigger renewed bullish momentum.

The FTSE 100 (^FTSE) is trading at 9.66K, modestly higher by 0.22. The index is near its 50-day moving average, signaling potential support, but a drop below 9,400 would increase the risk of a deeper pullback.

IBEX 35 (^IBEX) shows a slight gain, trading at 16.76K, up 0.13, but is still below its 50-day moving average, indicating a fragile technical backdrop.

The Euro STOXX 50 (^STOXX50E) trades at 5.7K, down -0.24, but enjoys a strong upward micro-trend. This suggests that, despite near-term volatility, investor appetite for European blue chips remains constructive, particularly in the technology and industrial sectors.

Stocks

Sector rotation and stock-specific news are shaping today’s trading landscape. In the FTSE MIB and IBEX, construction and infrastructure names like Sacyr, ACS, and Ferrovial are leading gains, with respective advances of 3.1, 2.8, and 1.6, reflecting positive sentiment in cyclical sectors. Conversely, Inditex, Puig, and Colonial are underperforming with losses of up to -2.44, highlighting ongoing rotation out of consumer and real estate names.

Across the Euro STOXX 50, DAX, CAC 40, and FTSE 100, renewable energy leaders such as Nordex, Siemens Energy, and Vestas are posting strong gains between 4 and 6. The insurance sector is under pressure, with Aegon falling sharply by -8.1 after announcing plans to relocate its legal base to the U.S., underscoring the market’s sensitivity to corporate restructuring news.

Economic News

Recently published data underscores a cautious but not pessimistic outlook for the eurozone. The Sentix Investors Sentiment for December rose to -6.2 from a previous -7.4, a material improvement that signals receding investor pessimism. Additionally, the European Central Bank (ECB) President Christine Lagarde has reinforced confidence in the region’s economic prospects, highlighting resilience in manufacturing and employment which could lead to upward growth revisions.

On the other hand, CFTC EUR speculative net positions have declined to 91.8 (thousands), down -15.5, indicating a reduction in bullish euro bets, likely in response to global central bank developments and cautious risk appetite.

Economic Events

The primary focus remains on the U.S. Federal Reserve’s FOMC meeting scheduled for December 10, 2025, which is expected to deliver a 25 basis point rate cut. This event is pivotal for European markets, as it will influence global risk sentiment, currency trends, and capital flows. Other notable events this week include the release of Producer Price Index (PPI) data, retail sales, and GDP figures in the U.S., all of which could trigger volatility and sector rotation in European equities depending on the results. Within Europe, several ECB speakers are scheduled, and the Eurogroup and EcoFin meetings will be closely watched for fiscal and monetary policy cues.

Market Sentiment

Overall market sentiment in Europe is cautious, with traders exhibiting a wait-and-see approach ahead of the Federal Reserve’s decision. Despite recent declines in major indices, constructive signals from the ECB and robust performances in technology and renewable energy sectors are providing a floor for risk appetite. The improvement in investor sentiment indicators and positive corporate momentum in select sectors suggest that, while volatility may persist, the downside is likely to be contained as long as macroeconomic data and central bank guidance remain supportive.

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