European Stocks Rally Following Wall Street Opening; Frankfurt Leads Gains

European equity markets rose after Wall Street’s opening bell, with Frankfurt’s DAX leading the charge at +1.7%. Amsterdam’s AEX followed closely with a 1.2% gain, while Paris’s CAC 40 advanced 1.1%. Milan’s FTSE MIB climbed 0.8% and Madrid’s IBEX 35 rose 0.7%, both indices continuing their recent momentum fueled by banking stocks.

London’s FTSE 100 bucked the trend, declining 0.7%. The dip stemmed from a contentious Bank of England vote on interest rate cuts and subsequent statements suggesting a potential slowdown in monetary easing.

Currency markets saw the euro hold steady against the dollar at $1.165. Meanwhile, the closely watched 10-year BTP-Bund spread traded around 79 basis points, briefly dipping below that level to reach lows unseen since April 2010.

In energy commodities, natural gas prices fell 1% to below €33 per Megawatt hour. Oil prices remained relatively stable, hovering just above $64 per barrel.

Amid this positive backdrop, high-capitalization stocks on Milan’s Piazza Affari saw strong activity. Interpump Group surged 8% after confirming its financial guidance. Buzzi Unicem followed with a 5% gain, while Prysmian rose 4%. Stellantis also performed well, climbing 3%. Banking groups Mediolanum and UniCredit were the sector’s top performers, each adding 2%.

Leonardo shares declined 6% to €46, mirroring a similar drop by Rheinmetall in Frankfurt after the latter reported earnings below market estimates.

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