European major stock indices open higher; Germany's DAX 30 rises 0.54%, UK's FTSE 100 rises 0.30%, French CAC 40 rises 0.25%, Euro Stoxx 50 rises 0.43%.

European major stock indices open higher; Germany's DAX 30 rises 0.54%, UK's FTSE 100 rises 0.30%, French CAC 40 rises 0.25%, Euro Stoxx 50 rises 0.43%.

European major stock indices opened higher on September 12, 2025, following a week of volatile trading. Germany's DAX 30 rose by 0.54%, the UK's FTSE 100 climbed by 0.30%, and the French CAC 40 gained 0.25%. The Euro Stoxx 50 index also surged by 0.43% .

The rebound was driven by several factors. Financial stocks led the market comeback, with insurance companies and banks performing particularly well. Europe's insurance sector index jumped over +2% on Friday, snapping a three-day losing streak . In Frankfurt and Paris, major insurers like Munich Re and SCOR climbed as much as 2–3% . Banking shares also advanced across the continent, with Italian banks surging amid speculation of industry consolidation . The Financial Times reported that Italy's UniCredit may add German board members as a step toward a potential Commerzbank tie-up, fueling optimism about cross-border bank mergers .

Industrials and commodities stocks also saw robust gains. The construction & materials sector jumped +1.1%, with building materials firms rising on hopes of renewed infrastructure spending . Meanwhile, European steelmakers rocketed higher after reports that Brussels will impose hefty new tariffs on imported Chinese steel to protect local industry . The European Commission plans duties of 25% to 50% on certain Chinese steel products . This policy boost sent steel stocks soaring: ArcelorMittal rose +2.6%, Germany’s Thyssenkrupp climbed +3.5%, and Salzgitter surged +5.2% .

Energy shares gained as well, with Brent crude oil jumping nearly 2% this week, topping $70 per barrel, after Ukraine’s attacks on Russian infrastructure prompted Moscow to halt some fuel exports . Oil majors like BP and TotalEnergies pushed higher alongside crude’s rise, providing additional support to indexes in London and Paris.

Trade-sensitive sectors were in focus due to new U.S. tariff announcements – but market impacts were limited. On Thursday, U.S. President Donald Trump caught pharma companies off-guard by announcing a 100% tariff on imported drugs not made in the USA. European healthcare stocks initially dipped on the news, then stabilized after clarifications that Trump’s tariffs do not apply to medicines from the EU under existing trade agreements . In fact, UK pharma giants AstraZeneca and GSK ended Friday up +0.4% and +1.1%, respectively .

Auto stocks saw a mixed reaction to trade news. Trump also proposed a 25% import tax on heavy trucks, which sent European truck-makers skidding – shares of Daimler Truck and VW’s Traton both fell over 2% . However, broader auto indices were little changed since the tariffs target commercial trucks more than passenger cars.

Despite pockets of weakness in autos and tech, these sector dips were not enough to derail the overall market rebound. Most sectors – from industrials to retail – participated in Friday’s rally, reflecting its broad-based nature. Amid the rally, several individual stocks saw outsized moves on company-specific news. InterContinental Hotels Group (IHG) shot up +4.0% in London, topping the FTSE 100 leader board . The jump came after JPMorgan issued a rare double-upgrade of IHG – from “underweight” to “overweight” – citing the hotel operator’s strong pricing power and “superior earnings visibility” in an uncertain economy . In Paris, eyewear giant EssilorLuxottica surged +2.3% after U.S. regulators approved its new myopia-correcting lenses for children , a product expected to drive growth in its vision-care business.

European airline stocks also climbed: Germany’s Lufthansa gained +1.6% following a Reuters report that it will unveil a restructuring plan on Monday including “several thousand” job cuts to reduce costs . By and large, though, Friday’s trade saw far more winners than losers, as positive catalysts outweighed the few negative headlines.

Macro & Policy Factors: Central Banks and Geopolitics Broader macroeconomic and policy news helped set the tone for the market. In the United States, inflation data came in exactly on target, bolstering investor confidence. The core Personal Consumption Expenditures (PCE) index – the Fed’s preferred inflation gauge – rose +2.9% year-over-year in August, matching July’s pace and lining up with economists’ forecasts . Headline PCE inflation was +2.7% (vs. 2.6% prior), also as expected . Equally important, U.S. consumer spending remained robust: personal spending jumped +0.6% in August, beating expectations, while incomes rose a solid +0.4% . This combination of easing price pressures and resilient demand reassured markets that the U.S. economy is not falling off track. “The US consumer is in ‘somewhat better shape’ than previously thought,” noted analysts at TD Economics, after back-to-back months of strong spending and growth . An improved growth outlook with cooling inflation implies the Federal Reserve “may have to do a little less in the way of rate cuts” to support the economy, the TD team added . In other words, the Fed might not need to slash rates as aggressively – but expectations for further easing remain intact. Indeed, nothing in the data “derails the case for two more rate cuts by the end of this year,” according to TD’s economists . Futures markets agree. The CME FedWatch tool currently shows an 86% probability of a quarter-point Fed rate cut at the October FOMC meeting , and traders are still pricing in roughly 0.35–0.40.