Opening
European equities closed broadly higher on Thursday, with the IBEX 35 leading regional gains at +0.96% to reach 19,287.1, while the FTSE 100 diverged sharply from its continental peers, falling 0.50% to 10,436.8. Sterling-denominated assets face distinct headwinds as the euro strengthened to 1.1434 against the dollar, a move that pressures UK export competitiveness while simultaneously lifting euro-area purchasing power. The IBEX 35's outperformance is the session's most consequential signal for European investors, as sustained momentum in Spanish equities reflects growing confidence in peripheral eurozone economies at a time when core markets such as the DAX gained a more modest 0.19%.
Brent crude slipped 0.72% to $77.46, easing input cost pressures for European industrials and transport-heavy indices, while gold's 1.03% advance to $4,124.50 signals persistent risk aversion that is likely to weigh on sentiment across cyclical sectors on the continent.
Key stock move
AstraZeneca (FTSE 100) was the standout mover of the session, tumbling 8.58% to 13,018p — the sharpest decline among major European blue chips. The sell-off dragged on London's benchmark and reflected renewed pressure on the pharmaceuticals sector, while gains elsewhere were modest, with ASML rising 2.12% and Siemens adding 2.09%.
Macro–Equity Bridge
Brent Crude −0.72% at $77.46 → TotalEnergies (TTE.PA), Shell (SHEL.L): softer crude compresses upstream realisations, partially offset by improved refining crack spreads Gold +1.03% at $4,124.50 → Fresnillo (FRES.L), Agnico Eagle listings: rising bullion price directly lifts per-ounce revenue and net margin at precious-metals producers IBEX 35 +0.96% at 19,287.1 → Inditex (ITX.MC) +1.81%: Spain's outperformance signals domestic demand resilience, supporting discretionary spend at the retailer's home market ASML +2.12% at €1,561.40 with EUR/USD +0.11% at 1.1434 → ASML (ASML.AS), Siemens (SIE.DE) +2.09%: semiconductor capex optimism drives equipment demand; marginal euro strength trims dollar-invoice repatriation value
What to watch today
Brent crude holds at $77.46 a barrel, with traders watching whether OPEC+ production signals or Middle East supply concerns shift the benchmark materially through the session. The euro trades at 1.1434 against the dollar, a level that will test exporters' earnings assumptions heading into quarterly guidance updates. Any deviation in today's eurozone inflation print from consensus forecasts carries particular weight at this exchange rate, where a stronger euro compounds margin pressure for DAX and CAC 40 industrials.