Susanna Riva The European stock market ended Monday, October 26, 2026, on a decidedly positive note. After a mixed start to the session—with the Frankfurt and Madrid stock exchanges declining, while London and Paris posted slight gains—the main indices recovered ground, closing in positive territory.
The most significant news of the day revolved around the rise in harmonized inflation data and the prospect of upcoming central bank meetings. At the same time, the reduction in pressure on oil and gas prices contributed to a more relaxed mood among investors.
Bullish closing of the main markets
The Frankfurt index ended the session up 0,91%, closely followed by Paris (+0,83%) and London (+0,71%).
Milan's FTSE MIB recorded the strongest gain, +1,29%, marking the best result of the day among the four capitals.
Performance by city
Frankfurt's gains marked a complete reversal from the opening, when the index had fallen 0,27%. Paris, which had initially been virtually unchanged (+0,05%), gained almost a percentage point, while London rose from a slight +0,56% to +0,71% by the close.
Milan, on the other hand, went from stable to an increase of almost 1,3 points, reflecting the optimism of local traders.
Reasons for the rise: inflation and monetary policies
Investors focused on upcoming data on economic growth and harmonized inflation . The prospect of a possible moderation in inflation fueled expectations of more accommodative policy from European central banks, pushing indices higher. Calm in the energy market, with oil prices slowing, further reduced inflationary pressures, creating a favorable environment for stocks.
Geopolitical Tensions: The Strait of Hormuz
Despite the markets' strong performance, attention remained focused on the conflict in the Middle East , particularly the situation in the Strait of Hormuz . This area, crucial for global oil transit, continues to pose a source of uncertainty for energy prices. However, for the time being, the reduction in the rush for oil has limited the immediate impact of these tensions on European markets, allowing positive sentiment to prevail at the close of the day.