Europe Stocks: STOXX 600, DAX, CAC 40 and FTSE MIB — 2026-09-11

Top developments

ECB Raises Rates to 2.50% Amid Inflation Fears

The ECB Governing Council decided on September 10 to increase the key interest rates by 25 basis points, bringing the deposit facility rate to 2.50%, effective September 16, 2026. This move was widely anticipated but reinforced concerns about further tightening given the persistent energy-driven inflation, with headline inflation projected at 3.0% for 2026. The decision weighed heavily on the DAX and CAC 40, as investors priced in higher borrowing costs for the Eurozone economy.

Oil Near $100 Triggers Broad Sell-Off on Sept 9

On Wednesday, September 9, European stocks closed sharply lower as Brent crude prices neared the $100 per barrel mark, fueled by renewed hostilities in the Middle East and attacks on Saudi infrastructure. The DAX fell 1.66% to 25,576.45 points, while the CAC 40 dropped 1.94% to 8,156.67 points, reflecting fears that high energy costs would stifle growth and force more aggressive central bank responses. This risk-off sentiment led to a broad-based decline across sectors, with luxury and autos particularly sensitive to the rising cost of capital and consumer spending fears.

Milan’s FTSE MIB Under Pressure from Banks and Defense Stocks

Piazza Affari struggled throughout the week, with the FTSE MIB closing down 0.58% on September 9 at 51,875 points, dragged down by weakness in banking stocks and defense contractors like Leonardo and Fincantieri. The Italian BTP-Bund spread widened to 85 points, its highest level since 2023, as rising yields globally put pressure on peripheral debt. Despite the broader decline, ENI rose in line with oil prices, while Lottomatica and STM were among the few positives earlier in the week.

Local view

France: BFM Bourse reported that the CAC 40 flanked towards 8,100 points on Thursday, September 10, as the market absorbed both the rise in oil prices and the ECB's rate decision. Analysts noted that while the rate hike itself was priced in, the "trübe Inflationsperspektiven" (dim inflation outlooks) cited by the ECB kept a lid on sentiment.

Germany: n-tv noted that the DAX had trouble maintaining levels above 26,000, with the market stabilizing only after the initial shock of the oil spike and ECB decision. Finanzen.net highlighted that the financial sector remained under pressure due to the combination of higher rates and potential credit quality concerns in an energy-shocked economy.

Context & numbers

• DAX: Closed at 25,576.45 on Sept 9 (-1.66%).
• CAC 40: Closed at 8,156.67 on Sept 9 (-1.94%).
• FTSE MIB: Closed at 51,875 on Sept 9 (-0.58%).
• ECB Rates: Deposit facility raised to 2.50%; Main refinancing to 2.65%; Marginal lending to 2.90%.
• ETF Flows: European-listed equity ETFs saw €8.51 billion in net inflows in Week 36, indicating some dip-buying despite volatility.

On the radar

• US Inflation Data: Investors are awaiting US CPI data scheduled for Friday, September 11, which will influence the Fed's next steps and, by extension, the euro-dollar exchange rate.
• BTP Auctions: Attention shifts to upcoming Italian bond auctions, where the spread over German Bunds (currently ~85 points) will be tested against rising yields.
• Middle East Geopolitics: Continued monitoring of the Strait of Hormuz situation remains critical for oil prices, which are currently hovering near $100/barrel.