Europe Stocks: STOXX 600, DAX, CAC 40 and FTSE MIB — 2026-09-14
European equities closed the week of September 7–11 with mixed results, as the pan-European STOXX 600 gained 0.3% to 637.60 points amid volatile oil prices and renewed Middle East tensions. The ECB’s decision to raise the deposit rate by 25 basis points to 2.5% on September 11 triggered immediate sell-offs in German and French indices, though Friday saw a partial recovery driven by stabilizing oil markets. Milan outperformed its peers on Friday, rising 1.4%, while the BTP-Bund spread fluctuated between 82 and 86 points throughout the week.
Europe Stocks: STOXX 600, DAX, CAC 40 and FTSE MIB — 2026-09-14
Top developments
ECB Raises Deposit Rate to 2.5%, Pressuring DAX and CAC 40
On Thursday, September 10, the European Central Bank raised its key interest rates by 25 basis points, setting the deposit rate at 2.50%. This decision, described by Zonebourse as a move to combat persistent inflation pressures, immediately weighed on equity sentiment. The DAX fell 0.69% on the day, closing in negative territory as investors digested the "hawkish" guidance regarding future hikes. Similarly, the French CAC 40 dropped toward the 8,100-point mark, reflecting fears that higher borrowing costs could dampen economic growth in the eurozone.
Friday Recovery Led by Milan and Stabilizing Oil Prices
Despite the mid-week turmoil, European markets rallied on Friday, September 11, as oil prices retreated from highs above $100/barrel. The FTSE MIB in Milan surged 1.4%, leading European gains, while the CAC 40 closed up 0.78% and the STOXX 600 rose 0.48%. MilanoFinanza noted that Avio led the Milanese index, while defensive sectors like Lottomatica also performed well. This recovery helped offset the sharp weekly declines seen earlier in the week, with the STOXX 600 ending at 637.60 points.
Middle East Tensions Keep Oil and Volatility Elevated
The primary driver of volatility throughout the week was the ongoing conflict between the U.S. and Iran, which kept Brent crude prices above $100 for much of the period. On Monday, September 7, European stocks closed mixed as investors assessed renewed hostilities, with the DAX down 0.15% to 26,006.53 points. Capital.fr highlighted that the CAC 40’s movements were heavily correlated with oil price swings, which briefly dipped before rebounding due to stalled peace talks. The energy sector’s performance remained a key differentiator for indices, with ENI gaining in Milan as oil climbed, while broader market sentiment stayed cautious.
Local view
In Germany, tagesschau reported that the DAX struggled to maintain stability above the 26,000-point threshold, with analysts citing "inflation and interest rate worries" as persistent headwinds despite Wall Street gains. Handelsblatt emphasized that the ECB’s second rate hike of the year has "pressed on sentiment," urging investors to watch upcoming consumer price data for further clues on the inflation trajectory. In France, BFM Bourse noted that luxury stocks faced pressure, contributing to the CAC 40’s earlier weakness, while Boursorama pointed out that the market is now pivoting focus toward the Federal Reserve’s next moves following the ECB’s tightening.
Context & numbers
- STOXX 600: Closed the week at 637.60 points (+0.3% on Friday).
- DAX: Traded around 26,000–26,006 points; fell 0.69% on Thursday post-ECB decision,.
- CAC 40: Fluctuated between 8,100 and 8,300 points; closed up 0.78% on Friday,.
- FTSE MIB: Rose 1.4% on Friday, leading European indices; hovered near 52,000–52,265 points during the week,.
- Bund Yield: The 10-year German Bund yield rose slightly to 3.348% on Monday, reflecting geopolitical risk premiums.
- BTP-Bund Spread: Fluctuated between 82 and 86 points, hitting highs from 2023 amid energy-driven inflation fears.
On the radar
- U.S. Fed Policy Shift: With the ECB having hiked, attention shifts to the Federal Reserve, where arguments for a rate hike are gaining traction following U.S. inflation data released on Friday.
- Italian Banking Consolidation: Investors are monitoring the "risiko bancario" (banking consolidation risks), particularly involving UniCredit and potential moves by Poste Italiane on Telecom Italia (Tim), which continue to influence FTSE MIB bank stocks.
- Oil Price Stability: The sustainability of the oil pullback below $100 remains critical for the recovery in transport and industrial sectors across Europe.
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