European stock markets maintained a positive tone on Wednesday, buoyed by a strong opening on Wall Street. Investors are focused on the U.S. Federal Reserve’s policy decision due later in the day, with further key announcements from the Bank of England and the Bank of Japan to follow on Thursday and Friday.
Milan’s FTSE Mib and Paris’s CAC 40 both advanced by 1%. The French index showed resilience despite a recent sovereign rating cut by Fitch. Frankfurt’s DAX saw more modest gains (+0.1%), while London’s FTSE 100 was flat. Government bonds also performed well, with yields declining on both sides of the Atlantic. The yield on Italy’s 10-year government bond (BTP) fell by 3 basis points to 3.48%, narrowing the spread with the German Bund to 79 basis points.
With markets betting on three interest rate cuts this year, attention is centered on whether Fed Chair Jerome Powell will align with investor expectations and provide forward guidance for 2026. Sector performance was led by semiconductors, with the Stoxx Europe 600 Semiconductor index rising 3%, and luxury goods, following positive sales data from China on cosmetics and jewelry. In New York, Nvidia fell 1.3% on reports China is investigating the firm for potential anti-trust violations, while Tesla soared 7% amid share purchases by CEO Elon Musk.
In Milan, standout performers included Brunello Cucinelli, which jumped 4% after an ‘overweight’ upgrade from JPMorgan—a rating also assigned to Zegna, which rose 2.3% in New York. Other notable gainers were Leonardo (+3.2%), Moncler (+2.9%), and STMicroelectronics (+2.6%). Banking stocks were also stronger, led by Intesa Sanpaolo (+2.6%) and BPER Banca (+1.7%), while Banco BPM and Mediobanca saw minor movements. At the bottom of the FTSE Mib were Amplifon (-1.2%), Tenaris (-1.2%), DiaSorin (-1%), and Snam (-0.9%).