Europe Stocks: STOXX 600, DAX, CAC 40 and FTSE MIB — 2026-09-26
European equities snapped a three-week losing streak this week, with the STOXX 600 gaining about 0.5% — its best week since early August — as falling oil prices offset pressure from rising bond yields. The DAX ended Friday up 0.51% at 25,396.22, while the CAC 40 eked out weekly gains of around 0.4% and the FTSE MIB was lifted by banks and STM. The key tension remains the ECB under pressure to follow the Fed with further hikes amid energy-driven inflation fears.
Europe Stocks: STOXX 600, DAX, CAC 40 and FTSE MIB — 2026-09-26
STOXX 600 books first weekly gain in four as oil eases
European shares advanced on September 25 as bond yields stabilized and oil pulled back on hopes the Strait of Hormuz could soon reopen, setting the STOXX 600 up for its first weekly gain in four weeks. The STOXX Europe 600 finished the week up about 0.5%, its best weekly performance since early August, snapping a three-week losing streak. The broader backdrop was described as "relief from falling oil, but pressure from rising bond yields".
DAX ends a volatile week with a Friday gain
The DAX rose 0.51% in XETRA trading to close at 25,396.22 points on Friday, September 25, putting the contained stocks' combined value at €2.111 trillion. The week itself was mixed — on Thursday, September 24, higher oil prices and rising bond yields pushed the DAX down by as much as 1% at its worst to 25,164 points, despite a positive German Ifo sentiment reading. The interplay of higher borrowing costs with resilient German data frames the yield sensitivity of the index heading into the next ECB meeting.
CAC 40: luxury is the make-or-break sector
The CAC 40 ended Friday slightly higher after a tumultuous week for sovereign debt, as investors stayed cautious amid inflation fears driving global bond yields higher. On Thursday, September 24, Paris closed in the red as oil and long rates climbed, with the CAC 40 losing 0.52%. ActivTrades warned on September 25 that "without luxury, the CAC 40 will have trouble restarting durably" — after six consecutive weekly declines, the index was on track to end its negative spiral with only modest weekly gains of about 0.4%.
FTSE MIB: banks lead, spread contained
Piazza Affari closed up 1.2% on Wednesday/Thursday trade, with banks supported by consolidation hopes and STM and Prysmian outperforming; the BTP-Bund spread was steady at 92 points with the 10-year BTP at 4.51%. On Friday, September 25, the FTSE MIB closed up 0.6%, again driven by banks and tech titles, with the euro strengthening against the dollar and the spread at 94 points. Thursday, September 24 was the weak session — a 0.85% decline to 51,543 points, weighed by Fincantieri while Eni surged.
ECB under pressure to match the Fed as rates rise
The ECB has already hiked: on September 10 it raised deposit, MRO and marginal lending rates to 2.50%, 2.65% and 2.90% effective September 16, 2026. French commentary this week noted the ECB is "under pressure to follow the Fed" on rates, with the Fed resuming tightening and leaving other central banks little room. Friday's Paris session was framed as the Fed and ECB believing "they can raise rates without breaking growth".
Local view
German media framed the week through yield anxiety: onvista (Reuters) reported on September 24 that "interest worries won't leave DAX investors alone," with higher oil prices and rising bond yields costing the index up to 1% intraday.
French commentary was cautious about sustainability: ActivTrades, via Boursorama, warned that without the luxury sector the CAC 40 "will have trouble restarting durably".
Milan-focused press highlighted the banking driver: SoldiOnline reported Piazza Affari "runs with the banks," with consolidation supporting the sector, while MilanoFinanza noted the euro strengthening against the dollar into Friday's close.
Context & numbers
- STOXX 600: +0.5% for the week ending September 25, best week since early August
- DAX: closed Friday September 25 at 25,396.22 (+0.51%); XETRA-cap of DAX constituents €2.111 trillion
- FTSE MIB: Thursday September 24 close 51,543 points (-0.85%); Friday +0.6%
- BTP-Bund spread: narrowed to 94.3 points on September 24 with the Italian 10-year at 4.48% and the German Bund at 3.54%
- ECB rates: deposit facility at 2.50% effective September 16, 2026
- Bear-case framing: BofA warns rising real yields, energy shocks and weaker AI investment could drive more than 10% downside for the STOXX 600 toward 580 by early Q2 2027
- Mid-week snapshot: Euro Stoxx 50 +0.08% at 6,323; DAX +0.10% at 25,600; CAC 40 +0.20% at 8,155; FTSE MIB -0.53% at 52,096 (September 23)
On the radar
- Strait of Hormuz developments were the swing factor behind the late-week oil decline — a reopening hope drove the Friday equity bounce
- Iran-related diplomacy: capitals noted the Iran situation continues to determine energy prices, with US–Iran talks showing little progress earlier this week
- Fed commentary risk: New York Fed's John Williams signaled another rate increase before the end of 2026, pressing both Bund yields and the ECB's next move
- Yield watch: the US 30-year Treasury yield reached its highest since 2004 on September 24 — global long-rate direction remains the key headwind for Bund-backed European indices
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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