Europe ends the day in the red; Ørsted tumbles 12% following U.S. pause on offshore wind plans

Indices

Major European indices are displaying a nuanced performance profile, shaped by sectoral rotation and broader economic anticipation. The FTSE MIB (FTSEMIB.MI) is currently trading at 44.63K, registering a modest dip of -0.28 but backed by a STRONG_LONG trend—a signal of solid underlying bullishness as the index trades near its yearly high. The DAX Performance Index (^GDAXI) is quoted at 24.28K, down -0.03 with a FLAT trend, indicating near-term consolidation after recent gains. The CAC 40 (^FCHI) trades at 8.13K, falling -0.32, with a flat short-term signal, reflecting uncertainty in French equities.

The FTSE 100 (^FTSE) is at 9.87K, down -0.29 and showing a FLAT micro-trend, indicating ongoing indecision in the UK market. The IBEX 35 (^IBEX) is trading at 17.18K, up slightly by 0.06, with a FLAT trend. The Euro STOXX 50 (^STOXX50E) stands at 5.75K, down -0.26 but maintaining a STRONG_LONG trend. This technical strength in the FTSE MIB and Euro STOXX 50 suggests continued investor confidence in select large-cap European equities, even as other indices pause for direction.

Stocks

Ørsted A/S (ORSTED.CO), Europe’s largest offshore wind developer, is a focal point today. The stock is trading at 117.2, registering a dramatic drop of -12.67. This sharp fall follows operational setbacks, including a stop-work order on its U.S. Revolution Wind project and the announcement of a substantial DKK 60 billion rights issue to shore up its balance sheet. Additionally, Ørsted recently downgraded its 2025 EBITDA outlook and saw a leadership change, further weighing on sentiment. Despite these challenges, analyst ratings show a recent upgrade from "Hold" to "Buy" by FEARNLEY SECURITIES, and the average one-year price target stands at 21.03, suggesting expectations of recovery or undervaluation at current levels.

Economic News

Recent European economic data indicates resilience amid headwinds. Eurozone GDP growth is holding just above 1, signaling the region’s ability to avoid recession despite muted household spending and persistent high government debt. Business confidence in Denmark improved slightly, with a reading of 90.1 in December, up from 89 previously, reflecting cautious optimism. However, Purchasing Managers' Index (PMI) data points to slowing business activity, particularly in German manufacturing, while France shows modest improvement.

Sector-wise, European banks are forecasted to benefit from robust 2025 earnings and cost-saving efficiencies through AI adoption. Meanwhile, the Intercontinental Exchange (ICE) set a record with 103 traded, highlighting the growing importance of LNG in the continent’s energy mix.

Economic Events

The week is dominated by major U.S. economic data releases, which are expected to be pivotal for market direction. Key events include U.S. GDP (Q3), Durable Goods Orders, and Consumer Confidence on December 23, Initial Jobless Claims on December 24, and housing data later in the week. The European calendar is relatively light, with no major domestic catalysts scheduled, amplifying the market’s sensitivity to U.S. developments. The results of these U.S. data points could impact global equity flows and influence European indices, especially as they may shape expectations for Federal Reserve policy in 2026.

Market Sentiment

Current sentiment across European markets is best described as cautiously optimistic, though tempered by macro uncertainty. The presence of STRONG_LONG signals in the FTSE MIB and Euro STOXX 50 underscores underlying bullishness in large-cap equities, while flat or marginally negative trends in other indices reflect investor reticence ahead of key international data releases. Defensive sectors have underperformed, while travel stocks and select cyclicals have outperformed, suggesting selective risk-on positioning. The anticipation of U.S. employment and growth data is leading investors to refrain from aggressive bets, favoring a wait-and-see approach.

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