European stock markets are largely down, with the exception of the Dax, which is slightly above parity following confirmation from ECB President Christine Lagarde that inflation remains near the 2% medium-term target and the economy grew moderately at 0.2% in the third quarter. This data exceeded market expectations and the ECB’s forecasts, despite geopolitical tensions.
The FTSE Mib is down 0.4%, weighed down by Stellantis (-9.9%) and Prysmian. Campari continues its rally (+11%),with Italgas surging 4%. The spread has narrowed to 76 points.
Simon Dangoor, Head of Fixed Income Macro Strategies at Goldman Sachs Asset Management, suggests the possibility of ECB rate cuts in December or the first half of 2026 might potentially be underestimated, even though the base case remains unchanged rates in the near future. He notes that a slowdown in Germany’s fiscal expansion could lower growth prospects and appease hawkish members of the committee. The December meeting, with the presentation of 2028 economic projections, could prompt a rate cut if inflation is projected lower than expected for the third consecutive year.
2:30 PM Negative Europe
Wall Street opens lower, and main European indices are also losing ground following the ECB’s announcement to hold interest rates steady at 2%.
The FTSE Mib is down 0.6%, dragged down by Stellantis (-9%) after its third-quarter results. Prysmian is also performing poorly (-4.8%).
Campari is shining (+10.5%), reporting organic sales growth of +4.4% in its quarterly report,with adjusted EBITDA up 18.8% in the third quarter.
Italy’s GDP at a Standstill in Q3,Markets React – Milan Finance Report
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11.00am The Ftse Mib accelerates downwards, Webuild reduces losses. spread stable at 75: Italy’s GDP at a standstill in the third quarter
Piazza Affari accelerates downwards (-0.7% to 42,941 points at 11am), undermined by Stellantis, Prysmian and Amplifon after the quarterly reports. While Webuild reduced its losses to -2% after the Court of Auditors rejected the government’s resolution for the project that commits 13.5 billion to build the Bridge over the Strait of Messina.
The BTP/Bund spread is stable at 76.6 basis points. in the third quarter of 2025, Istat estimated that Italy’s GDP remained stationary compared to the previous quarter and grew by 0.4% in trend terms. The third quarter had four more working days than the previous quarter and the same number of working days as the third quarter of 2024. The change captured for 2025 is 0.5%.
Germany’s GDP also stabilized in the third quarter, following a revised decline of 0.2% in the previous three months. The reading is in line with the consensus of economists. On a year-on-year basis, the German economy grew 0.3 percent in the quarter, in line with forecasts. While Germany’s seasonally adjusted unemployment rate stood at 6.3% in October, unchanged from the previous month. The reading is in line with the consensus of economists. Meanwhile, the number of unemployed in Germany fell by 1,000 in October, compared to the previous month’s revised increase of 13,000 and the expected increase of 8,000.After these macro data, while waiting for the ECB, the euro rises by 0.15% to 1.1617 dollars.
09.05 am Ftse Mib in red with Stellantis, Prysmian and Amplifon, spread stable at 76
European stock markets almost all fell at the start of the session. The Dax rises by 0.33%, the Cac40 loses 0.46%, the Ftse100 0.39% and the Ftse Mib 0.47% to 43,038 points. The macro context is driven by two vectors: the Federal Reserve, which cuts rates by 25 basis points but signals caution for December and an ECB expected to be neutral with dialog aimed at keeping rates where they are, “looking beyond” any minor deviations from the inflation target until the projections are updated in December.
The US-China agreements
all this while the US reduces tariffs on China to 47% in exchange for the resumption of soy purchases,a one-year pause on restrictions on rare earths and a crackdown on fentanyl precursors; in parallel,it finalizes an agreement with South Korea that provides for 350 billion dollars of investments in America in exchange for tariff relief.
government bond yields are rising again post-Fed and awaiting the ECB
US futures are little moved (S&P 500 -0.03% and Dow Jones -0.14%). Sentiment remains driven by the flow of quarterly reports and the Fed’s more cautious reading on possible moves in December. The euro/dollar rises to 1.1621 (+0.16%) and the dollar/yen to 153.40 (+0.43%). The yield on the 10-year US treasury rose to 4.083% after Fed Chairman Jerome Powell said a rate cut in December was “far from a given”. the BTP/Bund spread drops to 76 basis points with the yield on the 10-year BTP increasing to 3.41%.
Stellantis, prysmian, Amplifon, Webuild and Iren did badly in Milan. Unicredit resigned.Campari and
The market faces a tricky situation. While a weakening labor market might suggest the Federal Reserve should ease monetary policy, persistent inflation is complicating matters. Its preventing the fed from acting as quickly as it’d like.The lack of fresh economic data adds another layer of difficulty, according to market analyst Kenwell.
As of Wednesday, the Nasdaq 100 is up over 20% year-to-date and more than 55% from its April lows, marking a seven-month winning streak. However, if Federal Reserve Chairman Jerome Powell’s assessment holds – that a rate cut in December isn’t guaranteed – it could cause investors to pause the market’s recent climb.
Upcoming quarterly earnings reports will be critical. We might see investors take profits after such a substantial rally. But, provided that earnings remain strong and consumer spending holds up, any dips could present good buying opportunities.Many investors currently have cash on the sidelines, waiting for a more favorable entry point, kenwell notes.
ECB Holds Rates Steady at 2%
The European Central Bank (ECB) announced its decision on interest rates at 2:15 pm,followed by a press conference with President Christine Lagarde at 2:45 pm. “The ECB meeting isn’t about the rate decision itself – frankfurt is expected to leave rates unchanged at 2% – but rather the tone and any indication of a shift from its current firm stance,” says Philippe Haïk, portfolio manager at Axiom Alternative Investments.
“We don’t anticipate significant changes from this meeting. The macroeconomic data released as the last meeting largely confirmed the ECB’s assessment: slow but stable growth, without the significant impact from tariffs initially feared, and inflation returning to the 2% target in the medium term. A possible decline in the second half of next year is largely seen as technical and temporary. We believe the risks are slightly tilted towards a more restrictive tone, as the latest PMI and September inflation data were robust.”
France’s GDP Rises 0.5% in Third Quarter,Exceeding Expectations
The euro gained 0.15% to 1.1616 dollars. France’s GDP increased by 0.5% in the third quarter,following a 0.3% increase in the previous quarter, according to preliminary data. This result surpassed expectations.