Edward Marchesi The European stock market session on November 2, 2026, opened on a cautious note, with traders shifting their focus to the US midterm election results and upcoming macroeconomic indicators. Madrid outperformed other major indices, but the day was marked by cautious trading and sharp moves in commodities.
Meanwhile, the bond market experienced a slight improvement: the spread between the 10-year BTP and the German Bund narrowed, and yields declined moderately. On the currency axis, the euro strengthened against the dollar, while oil prices fell significantly following diplomatic developments and OPEC+ production decisions.
Performance of indices and bonds on November 2, 2026
The main European markets closed either in positive territory or slightly mixed: Madrid gained about 1,1%, followed by Milan with a +0,5%, Paris +0,45%, Frankfurt +0,4%, and London +0,1%. Caution dominated, fueled by anticipation of the US PMI and ISM data due this afternoon and the US midterm elections.
Regarding government bonds, the BTP-Bund spread settled at around 115-116 basis points, down from 118 points at the previous close. The yield on the benchmark 10-year BTP fell to around 4,49%, while the Bund settled at around 3,31%, helping to narrow the spread. These movements reflect a slight reduction in pressure on Italian bonds and increased risk appetite among some market participants.
Macro and currency indicators
The euro showed moderate strength, trading near 1,12 to the dollar (around 1,1191), and hovered around 176,61 yen. The dollar/yen traded at around 157,81. On the cryptocurrency front, Bitcoin continued to lose ground after a recent cyberattack impacted traders, trading around $77.000.
Stocks, sectors, and commodities: who's rising and who's falling?
Among sector stocks, the airline sector shone: Air France-KLM rose around 4% ahead of its results release on November 5, while Ryanair gained more than 3% after confirming its goal of reaching 300 million passengers by 2034. The IAG group, which includes British Airways and Iberia, also showed growth of close to 3% ahead of its results release on November 6.
Rail and tourism companies benefited from favorable expectations for travel demand, while the energy sector had a negative day. Oil companies such as BP , Shell , Eni , Repsol , and TotalEnergies posted losses, all less than a percentage point, on the back of falling crude oil prices and the prospect of a resumption of diplomatic talks between the United States and Iran.
Commodity prices and their impact on stocks
Oil prices fell significantly: Brent crude returned to around $109-110 a barrel (-3,9%/-6,4% depending on the benchmark), while WTI hovered near $100-101 (-3,2%/-4,2% recorded in some measurements). European natural gas also fell, settling around €100-101 per MWh. Gold also saw downward movements in spot prices, reflecting investors' rotation toward liquidity-related assets.
This environment penalized utilities and energy-related stocks: for example, A2A showed a drop of more than 2%, while other companies in the sector were more cautious. The automotive sector also showed signs of weakness, with limited declines for names such as Porsche , Volkswagen , Stellantis , and Renault.
In the banking and financial sectors, the picture was mixed: some institutions, such as Santander , Unicredit , Bper , and MPS , performed well, while other groups closed the session slightly down. Among Italian mid- and small-cap stocks, Juventus , Technogym , D'Amico , and Webuild stood out , posting gains, while Iren and Caltagirone reported the sharpest declines.
The week will continue to be closely monitored for PMI data from the European Union and the United States, as well as the release of key corporate earnings in the coming days: elements that could redefine the market direction in the days following the midterm elections.