Europe Market Wrap 11 September: FTSE MIB Jumps 1.36 Percent as Oil Retreats and Banks Rebound
European shares rose on Friday after 4 sessions of declines on the Stoxx Europe 600, which closed 0.49 percent higher at 639.10 as crude gave back part of Thursday’s surge and telecoms and banks led the rebound, but the index still ended the week 1.66 percent lower, on our calculation from our 4 September close of 649.88. Italy’s FTSE MIB was the strongest major board, up 1.36 percent at 52,512.03, and the Euro Stoxx 50 gained 0.90 percent to 6,325.13, while the DAX added 0.82 percent to 25,568.56 and the FTSE 100 rose 0.39 percent to 10,650.44. Brent crude settled 2.81 percent lower at 104.61 dollars a barrel after a report that Gulf foreign ministers could meet their Iranian counterparts to discuss temporary shipping arrangements through the Strait of Hormuz, per Reuters, a day after the European Central Bank decided to raise its deposit rate to 2.50 percent from 2.25 percent, with effect from 16 September.
Telecoms and banks lead, healthcare lags
The Stoxx Europe 600 banks index rose 1.47 percent and telecoms 1.48 percent, with autos up 0.62 percent, oil and gas 0.66 percent and technology 0.81 percent, while healthcare fell 0.61 percent, the only decline among the 8 sector indices we track. In London, HSBC and Barclays rose 1.5 percent and 1.9 percent as the bank index rebounded after 3 sessions of declines, per Reuters, which also reported that traders price 44 basis points of Bank of England rate rises by year end, up from about 25 basis points 2 weeks ago. The FTSE 100 nevertheless logged its biggest weekly loss since late July, per the same report; on our calculation it is 1.67 percent below its 4 September close of 10,831.09.
The ECB after the hike
On Friday 2 ECB policymakers opened the door to further increases. Bundesbank President Joachim Nagel said the bank might need to move into mildly restrictive territory depending on how energy prices evolve, and Estonia’s Ulo Kaasik called market pricing of further rises understandable, while the Central Bank of Ireland’s Gabriel Makhlouf wrote that raising rates a great deal more could carry real costs for growth, the wire reported. Money markets price at least 3 more ECB rate rises over the next year, the same report said. The German 10 year Bund yield ended near 3.52 percent, up about 1 basis point on the day, on our reading of intraday quotes captured at 20:19 GMT, and the 2 year near 3.20 percent.
UK growth beats, the pound firms
The Office for National Statistics said UK GDP grew 0.4 percent in July after 0.3 percent in June, with services up 0.4 percent, production 0.2 percent and construction 0.1 percent; output in the 3 months to July was 0.4 percent higher than in the 3 months to April, the eighth consecutive 3 month gain. Sterling traded at 1.3523 dollars at 20:32 GMT, up 0.11 percent on the day, while the euro slipped 0.14 percent to 1.1594 dollars.
| Index | Close | Change |
|---|---|---|
| FTSE MIB (Italy) | 52,512.03 | +1.36% |
| IBEX 35 (Spain) | 19,838.50 | +0.91% |
| Euro Stoxx 50 (euro area) | 6,325.13 | +0.90% |
| DAX (Germany), Xetra close | 25,568.56 | +0.82% |
| CAC 40 (France) | 8,179.77 | +0.78% |
| AEX (Netherlands) | 1,098.76 | +0.50% |
Closes of 11 September 2026 captured at 20:19 GMT, ranked by change; changes are against each exchange or index administrator’s own 10 September close (Borsa Italiana, BME closing auction 15:35 GMT, STOXX, Euronext 16:05 GMT last level, Deutsche Boerse). Deutsche Boerse’s dated price history row for 11 September had not posted at capture, so the DAX level is the vendor’s Xetra close and is subject to amendment. Split across 2 tables for legibility on a phone.
| Index | Close | Change |
|---|---|---|
| Stoxx Europe 600 (Europe) | 639.10 | +0.49% |
| FTSE 100 (United Kingdom) | 10,650.44 | +0.39% |
| SMI (Switzerland) | 13,775.27 | +0.26% |
Same basis, ranked continuously with the first table: STOXX, London Stock Exchange and SIX. OMXS30 and PSI 20 are omitted to keep the tables lean.
| Stoxx Europe 600 sector | Change |
|---|---|
| Telecoms | +1.48% |
| Banks | +1.47% |
| Technology | +0.81% |
| Oil and gas | +0.66% |
| Autos | +0.62% |
| Healthcare | -0.61% |
Stoxx Europe 600 sector indices, closes of 11 September 2026 from the vendor’s feed captured at 20:19 GMT, day on day, ranked by change. Personal and household goods (up 0.56 percent) and basic resources (up 0.34 percent) are omitted to keep the table lean.
Why it matters: Friday’s rebound was a relief trade on oil, not a change in the rate picture: the sectors that rose most, banks and telecoms, are the ones that gain from higher rates and defensive cash flows, while the week’s damage remains. On our calculation from our own published closes the Stoxx Europe 600 is down 1.66 percent on the week, the DAX 1.83 percent, the FTSE 100 1.67 percent, the CAC 40 1.20 percent and the SMI 4.31 percent, and only the FTSE MIB is higher, by 0.79 percent, so a single session of buying recovered less than a third of the week’s loss on the broad index. With the ECB’s deposit rate set to move to 2.50 percent on 16 September, the upper end of the neutral range the bank itself estimates, and money markets pricing at least 3 further rises, the equity market is now trading the same energy price that drives the rate path.
Outlook: The next tests are external before they are European: the Federal Reserve decides on 16 September with markets pricing an 87 percent chance of a quarter point rise on CME’s FedWatch measure as carried by the wire, and the Bank of Japan meets on 17 and 18 September. In Europe the market will watch whether the Gulf talks reported on Friday produce a shipping arrangement that holds crude below the 107.63 dollar settlement of Thursday; a return above it puts the banks and telecoms bid of Friday at risk and revives the October ECB move that its policymakers left open.
Sources: STOXX, Deutsche Boerse, Euronext, London Stock Exchange, Borsa Italiana, BME, SIX, Office for National Statistics, European Central Bank, Reuters, CNBC, The Edge.
