European markets open higher as Adidas shares jump on record annual revenue

Indices

European equity benchmarks are displaying a blend of resilience and select profit-taking, reflecting the nuanced investor sentiment prevalent in late January 2026. The FTSE MIB (Italy) has surged to a 25-year high, trading at 45.44K, up 1.09%. This movement suggests robust investor confidence in Italian equities, likely underpinned by strong sectoral performance. In contrast, the DAX (Germany) has edged down to 24.89K, a 0.15% decline, indicating cautious positioning and some profit-taking after recent highs.

France’s CAC 40 remains steady at 8.15K, posting a modest 0.27% gain that signals balanced sentiment. The FTSE 100 (UK) is higher at 10.01K, up 0.54%, buoyed by energy and financial sector strength. Spain’s IBEX 35 has advanced to 17.61K, a 0.7% increase, reflecting positive momentum. The EURO STOXX 50 is up 1.3% at 5.93K, indicating broad-based optimism across the continent’s blue chips. The strong readings in several indices, particularly the FTSE MIB and EURO STOXX 50, signal emerging buy opportunities, especially in outperforming sectors.

Stocks

Today’s trading session has spotlighted several key stocks across the major European indices. On the FTSE MIB, Telecom Italia (TLIT) is the most active, with 159.88 at a price of €0.58, rising 0.98%. Lottomatica (LTMC) and Banco BPM (BAMI) are among the top gainers, indicating strength in the telecommunications and banking sectors. Conversely, Diasorin (DIAS) and Fincantieri (FCT) have declined, highlighting sector rotation and profit-taking in select names.

On the DAX, MTU Aero Engines AG and Airbus have led gains, both advancing by more than 1.9%, while Vonovia and Qiagen NV have seen slight pullbacks. In France, CAC 40’s top gainers are Stellantis NV and Safran, reflecting ongoing strength in automotive and aerospace. L'Oréal and Danone are under mild pressure, possibly due to rotation out of defensive sectors.

These stock movements suggest that investors are gravitating toward cyclical and growth-oriented sectors, with opportunities evident in telecommunications, banking, aerospace, and automotive stocks.

Economic News

Recent economic developments have had a tangible impact on European markets. The anticipation of the Federal Reserve’s FOMC Policy Statement, with expectations for the federal funds rate to remain at 3.50%–3.75%, has contributed to cautious optimism and steadied risk appetite. Additionally, upcoming earnings from major global companies such as Apple, Caterpillar, and Mastercard are closely watched for signals on corporate health and global demand trends.

Later in the week, key Eurozone data releases—including Q4 GDP (quarter-on-quarter) and the December unemployment rate—are expected to provide further insights into the region’s economic trajectory. Past sessions have seen volatility driven by geopolitical developments and U.S. trade policy concerns, particularly around tariffs, which continue to influence investor positioning and sectoral allocations.

Economic Events

Looking ahead, several major economic events are poised to shape market direction:

1. Wednesday, January 28: The FOMC Policy Statement is expected to keep U.S. rates unchanged, which may reinforce global risk-on sentiment if confirmed.
2. Thursday, January 29: Earnings reports from Apple, Caterpillar, and Mastercard have the potential to sway not only sector peers but overall market confidence.
3. Friday, January 30: Eurozone Q4 GDP and December Unemployment Rate reports will be pivotal for assessing the region’s growth momentum and labor market health.

These scheduled events are likely to generate volatility, with potential impacts on equities, currencies, and sector rotation.

Market Sentiment

Sentiment across European markets is broadly optimistic, but with pockets of caution and sector-specific rotation. The record highs in the FTSE MIB and further advances in the FTSE 100 and EURO STOXX 50 reflect investor willingness to engage with risk, particularly in select cyclical sectors. However, minor declines in the DAX and subdued moves in defensive names suggest some investors are taking profits or hedging against potential volatility around upcoming macroeconomic data and earnings.

Overall, the market environment supports a tactical approach, favoring well-performing sectors and momentum-driven strategies, while remaining vigilant for potential earnings or macro-driven reversals.

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