European trading began on a strong note Friday, encouraged by Wall Street’s latest record-breaking surge

Indices

As of the latest session, the major European indices are exhibiting a nuanced landscape marked by both resilience and tactical consolidation. The FTSE MIB Index (FTSEMIB.MI) is trading at 44.02K, posting a gain of 313.45 and maintaining a “STRONG_LONG” micro-trend. This sustained upward momentum, particularly in banking and energy names, continues to attract institutional buy interest and signals ongoing bullish conviction.

The DAX Performance Index (^GDAXI) is quoted at 24.41K, up by 117.78 with a FLAT short-term trend, reflecting consolidation as German blue chips digest recent gains and global trade uncertainties.

The CAC 40 (^FCHI) stands at 8.14K, gaining 58.67 but tracking a FLAT micro-trend, which highlights investor caution amid ongoing political uncertainties in France.

The FTSE 100 (^FTSE) is at 9.74K, up 38.95 and exhibiting a FLAT trend, suggesting a tactical pause as UK markets absorb recent advances and await fiscal guidance.

The IBEX 35 (^IBEX) is trading at 16.99K, climbing 109.6 to fresh record highs, with a FLAT micro-trend. This underscores consolidation at elevated levels, supported by robust banking and basic resources performance.

The Euro STOXX 50 (^STOXX50E) is at 5.78K, up 30.32 and maintaining a STRONG_LONG trend, highlighting ongoing bullish momentum in Eurozone blue chips. The overall constellation of trends suggests selective buy opportunities in Italy and pan-European leaders, while flat signals in other markets advocate patience and risk management.

Stocks

Sector rotation remains pronounced in today’s market action. Banking and basic resources are outperformers, with Spanish banks such as Sabadell and Caixabank delivering year-to-date returns of 67 and 47, fueling the resilience of the IBEX 35. Steelmakers like ArcelorMittal, Aperam, Thyssenkrupp, and SSAB have each advanced over 3, buoyed by regulatory support for steel imports.

Conversely, the automotive and technology sectors are under pressure. BMW (BMW:GR) has declined by 8.9 after a weak earnings outlook, while French banks Société Générale, Crédit Agricole, and BNP Paribas have reported losses, weighing on the CAC 40. Inditex (ITX.MC) surged 7 after robust winter sales, driving the IBEX 35 to new highs. In the broader market, Schneider Electric (EPA:SU) jumped 3.8 following a large share buyback announcement, while Delivery Hero (ETR:DHER) dropped 5.6 after a downgrade, illustrating ongoing volatility driven by stock-specific news.

Economic News

Recent macroeconomic releases paint a mixed, yet generally supportive backdrop for European equities. Spain’s GDP growth has moderated to 0.6, down from 0.8, while retail sales growth cooled to 4.2. However, Eurozone consumer confidence improved by 0.7 to -14.2, and inflation remains contained with the Eurozone CPI at 2.1. These dynamics reduce pressure on the European Central Bank for immediate tightening and support risk assets.

On the policy front, the Swiss National Bank has held rates at 0 amid cooling inflation, while the ECB has proposed simplifying EU banking capital rules, potentially further supporting the banking sector.

Economic Events

This week is dense with high-impact macroeconomic events. The ECB’s monetary policy meeting on December 12, 2025, is in focus, with potential updates on inflation forecasts and signs of policy adjustment that could sway rate-sensitive assets. Data releases such as Eurozone Industrial Production, GDP figures, and Germany’s ZEW Economic Sentiment Index are also on the calendar, poised to influence market direction. In Spain, upcoming Producer Price Index, Consumer Confidence, and Retail Sales reports are particularly relevant for IBEX 35 constituents. Central bank communications—especially from the ECB and SNB—are expected to be key volatility catalysts.

Market Sentiment

The prevailing mood across European markets is cautiously optimistic. Sustained capital inflows into blue-chip indices like 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 is counterbalancing ongoing weakness in autos and technology, leading to a tactical, sector-rotational approach among investors. The prevalence of flat short-term trends in several indices underscores a wait-and-see stance as market participants navigate a landscape of major economic and policy announcements. The constructive long-term view on leading benchmarks remains intact, though vigilance and selective positioning are advised.

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