Europe Markets Weekly — 2026-09-25

Market Snapshot

• STOXX 600: +0.7% on Friday, down 0.55% to 636.44 during the mid-week slide; on track for a ~0.15% weekly gain, which would snap a three-week losing streak
• DAX: +0.8% on Friday; earlier in the week it fell to 25,266.53, its lowest level since 24 July, before recovering
• FTSE 100: declined 0.2% to 10,679.99 during the mid-week selloff, before Friday's broader European rebound
• CAC 40: fell 0.52% in the week's risk-off sessions after closing Sept 23 at 8,123.41

1 sources

armenpress.am

armenpress.am

Key Drivers

• Rising rate expectations sank mid-week markets: On 23 September, European stocks and U.S. futures dived as interest-rate expectations climbed, with the DAX falling 0.80% that session
• Bond selloff pressured equities, then oil's 1% drop eased the pain: A 1% drop in crude oil on Friday relieved energy-intensive and rate-sensitive growth stocks, driving the STOXX 600's 0.7% rebound
• Surprisingly strong eurozone growth data: The eurozone's September flash composite PMI came in at 53.1 versus a 51.5 forecast — the strongest since April 2023 — even as the euro slid to its lowest since late July
• Stronger growth is complicating ECB policy: Business activity accelerated sharply in September despite rising energy prices, adding to evidence the bloc is resilient but also reinforcing the case for tighter ECB policy

1 sources

europesays.com

europesays.com

Earnings & Corporate

• Year-end rally hinges on earnings: Bloomberg reports European equities face a high bar for a year-end rally, with investor confidence resting on a robust corporate earnings outlook
• Analysts see 3–6% year-end upside: Deutsche Bank forecasts roughly 15% STOXX 600 earnings growth in 2026 and expects 3–6% year-end upside for major European indices if yields stabilize and earnings estimates hold

Geopolitics & Energy

• Brent near $106 as bond yields spike: European equities fell for a second consecutive session as Brent hovered near 106, with the thirty-year yield topping 5.4%
• European gas rises on Iran tensions: Gas prices popped as Iran set tough conditions for any thaw with the U.S., tightening LNG supply and leaving storage below seasonal norms ahead of winter
• Oil majors are the year's standout performers: Record diesel prices and refining margins have pushed Europe's oil stocks up as much as 87% in 2026
• Sanctions risk for LNG supply: U.S. sanctions legislation could allow tariffs of up to 100% on countries buying Russian oil, raising the risk of a further decline in LNG supplies for Europe

What to Watch Next Week

• ECB rate path: Goldman Sachs Research expects the ECB to hike again in December amid resilient growth and Iran-war-related inflation pressures, saying rates are unlikely to stay above 3% — watch for officials to fine-tune that message
• Inflation trajectory: With the ECB expecting elevated energy costs to keep eurozone inflation above target well into 2027, upcoming energy and inflation prints will be key
• Earnings-led sentiment: Whether the STOXX 600 can build on its first weekly gain in three weeks depends on corporate outlook statements supporting the lofty earnings-growth forecasts underpinning the year-end rally thesis
• Energy supply developments: Monitor upcoming gas storage and LNG flows as Iran-related supply risks and potential sanctions effects unfold into winter