EU Stock Market Today, 11 December 2025: Cyclicals Rally While Tech Stumbles After Fed Rate Cut and SNB Hold

European equities shook off an early wobble on Thursday, with most major EU indices closing solidly in the green as investors rotated into economically sensitive sectors and financials – even as technology stocks struggled under renewed AI‑bubble fears.

The EU stock market today (11 December 2025) was shaped by three big forces: last night’s U.S. Federal Reserve rate cut, a cautious but supportive Swiss National Bank (SNB) decision, and a wave of stock‑specific news from Schneider Electric to Naturgy and Delivery Hero. ^[1]

How EU stock markets performed today

By the closing bell on 11 December 2025:

The STOXX Europe 600 climbed to 582.00, up about 0.66%, edging closer to its record highs from November. ^[2]
The Euro Stoxx 50, the main blue‑chip benchmark for the euro area, advanced roughly 1.0% to 5,765.20. ^[3]
Germany’s DAX 40 gained 0.93% to about 24,354 points, extending its winning streak and pushing further into record territory. ^[4]
France’s CAC 40 rose 0.76% to 8,083.78, helped by a sharp rally in Schneider Electric. ^[5]
Italy’s FTSE MIB added 0.89% to 43,851, recovering from yesterday’s modest pullback. ^[6]
Spain’s IBEX 35 outperformed with a 1.0% rise to 16,930.70, setting fresh 52‑week highs and capping a remarkable year in which the index has gained over 40% in 12 months. ^[7]

Intraday, the tone evolved from cautious to constructive. Reuters noted early in the session that the STOXX 600 was only about 0.2% higher, as tech weakness offset the initial enthusiasm from the Fed’s “less‑hawkish‑than‑feared” comments. ^[8] Later in the day, data from Investing.com showed buyers firmly in control, lifting the index more decisively into positive territory by the close. ^[9]

The picture fits neatly with broader euro‑area benchmarks: TradingEconomics data indicate the EU50 (Euro area stock index) and national indices such as DE40 and FR40 all moved higher on the day, reinforcing a region‑wide relief rally after the Fed decision. ^[10]

Tech jitters: Oracle’s warning hits SAP and the AI trade

If Thursday was a good day for European equities overall, it was far less kind to technology stocks.

The European tech sector slipped around 0.3% in morning trade, according to Reuters. ^[11]
SAP – one of the heaviest tech weights in both the DAX and STOXX indices – fell about 2–3% after U.S. software giant Oracle delivered weaker‑than‑expected guidance, reigniting fears that the AI investment boom may not translate quickly into profits. ^[12]

The Oracle shock was enough to pull the Nasdaq lower on Wednesday and continued to echo across European tech today. ^[13] Analysts quoted by Reuters argued that Oracle sits “at the epicentre of the AI financing debate”, and its disappointment has reminded investors that AI‑linked capex remains high while the earnings payoff is uncertain. ^[14]

Still, not all tech names were hit equally. TradingView’s session wrap showed ASML and Infineon trading near flat, while some cyclical beneficiaries of digital and industrial investment – like Capgemini and Siemens – participated in the broader rally. ^[15]

In short: “AI fatigue” is real, but investors are differentiating between pure cloud/software exposure and industrial‑tech plays leveraged to infrastructure, automation and power demand.

Central banks in focus: Fed cuts, SNB holds – what it means for EU stocks

A divided Fed cuts rates again

On Wednesday night, the U.S. Federal Reserve cut its policy rate by 25 basis points to a range of 3.5–3.75%, the third reduction in 2025 and the lowest level in roughly three years. ^[16]

Key takeaways:

The decision was unusually divisive inside the FOMC, with multiple dissents on both sides (some wanted a bigger move, others no cut at all). ^[17]
The Fed’s projections currently signal only one additional 25 bps cut in 2026, a more cautious path than markets had priced in before the meeting. ^[18]
U.S. equities initially rallied, and short‑dated Treasury yields fell, confirming that investors still see the overall policy stance as supportive for risk assets. ^[19]

For European stocks, the message is mixed but broadly positive:

A slower Fed easing cycle keeps upward pressure on the dollar, which can support European exporters and the euro‑area earnings outlook.
At the same time, lingering uncertainty about U.S. growth and AI capex – including the Oracle shock – is keeping a lid on the most rate‑sensitive and growth‑heavy names in Europe’s tech complex. ^[20]

SNB holds at 0% and trims inflation forecasts

Closer to home, the Swiss National Bank left its policy rate unchanged at 0% at its December meeting and reiterated that it remains ready to intervene in FX markets if needed. ^[21]

The central bank now expects:

Average inflation of 0.2% in 2025,
0.3% in 2026, and
0.6% in 2027,

firmly within its definition of price stability and slightly lower than September’s projections. ^[22]

The SNB’s stance contributed to:

A stronger Swiss franc, as highlighted by currency moves in the wake of the announcement. ^[23]
A sense that European central banks, unlike the Fed, are already well into the “steady‑as‑she‑goes” phase, with markets pricing relatively little ECB movement through most of 2026. ^[24]

For EU stocks, this backdrop – Fed tentatively easing, SNB and ECB largely on hold, inflation trending towards 2% – continues to favour quality equities over cash, but also supports banks and insurers that can earn decent margins in a world of positive real rates.

Sector snapshot: cyclicals, banks and travel lead; utilities and tech lag

Today’s tape told a clear “rotation” story:

Industrials and banks were among the strongest gainers on the STOXX 600, each up around 0.5–0.6%, according to Reuters. ^[25]
TradingView’s market wrap flagged travel & leisure and retail as key outperformers, helped by Fed‑driven optimism on global growth and lower discount rates for future earnings. ^[26]
Utilities underperformed, dropping about 0.7% as sector‑specific news hit Naturgy and safe‑haven demand ebbed amid the broader risk‑on mood. ^[27]
Technology ended softer overall, dragged by SAP and ongoing concerns about stretched AI valuations. ^[28]

This pattern dovetails with the 2026 strategy notes coming from major global houses: RBC, Charles Schwab and Franklin Templeton all highlight European financials, industrials and other cyclicals as prime beneficiaries of reflation, fiscal stimulus and potential dollar weakness, while warning that high‑multiple growth and AI plays could stay volatile. ^[29]

Biggest EU stock stories on 11 December 2025

Schneider Electric: buyback and higher margins ignite French market

Schneider Electric was one of the stars of the session:

The company announced a share buyback programme of up to €3.5 billion through 2030, its first major repurchase in almost three years. ^[30]
Management also raised its medium‑term margin ambitions, targeting a roughly 250‑basis‑point improvement in adjusted EBITA margins between 2026 and 2030, far above prior guidance. ^[31]

The market reaction was swift:

Schneider shares jumped around 3.5–4%, making it one of the top gainers on the CAC 40 and a major driver of the index’s 0.76% rise today. ^[32]

The story plays into a broader theme: companies with clear capital‑return policies and credible efficiency plans are being rewarded, particularly when they sit at the crossroads of AI‑related infrastructure, energy transition and industrial automation.

Naturgy: BlackRock exit hits Spanish utility stocks

In Spain, Naturgy slumped after a large shareholder exit:

BlackRock’s infrastructure arm sold a 7.1% stake in Naturgy via an accelerated bookbuild, raising about €1.7 billion and knocking the stock more than 5% lower. ^[33]

Because utilities are often owned for income and perceived safety, such a sizeable secondary sale rattled the sector:

Reuters reported utilities as the worst‑performing sub‑index on the STOXX 600 today, dragging on otherwise solid index gains. ^[34]

Delivery Hero: downgrade after activist‑fuelled bounce

Berlin‑based Delivery Hero went the other way, sliding after a powerful rally:

The stock fell around 5–6% after Citigroup cut its rating to “sell” from “neutral”, arguing that competitive pressures – particularly in the Middle East and North Africa – could constrain margins. ^[35]
The downgrade followed a nearly 14% surge on Wednesday, when reports surfaced that major shareholders were urging the company to explore strategic options, including the potential sale of assets. ^[36]

The episode illustrates how post‑pandemic delivery platforms remain sentiment‑driven, with activist speculation, competitive dynamics and rating changes able to move prices dramatically in short bursts.

RS Group, Drax and others: stock‑specific winners

A few additional standouts across Europe:

UK‑listed RS Group jumped over 4%, topping the STOXX 600 after a J.P. Morgan upgrade, reflecting renewed interest in industrial distributors leveraged to capex and automation themes. ^[37]
Drax rose between 1–2% after signalling that full‑year profit would land at the top end of guidance, a reassuring message for investors in the UK’s power and biomass group. ^[38]
Italian luxury name Brunello Cucinelli climbed after reiterating double‑digit revenue growth guidance for 2025, reinforcing confidence in high‑end European consumer brands despite macro headwinds. ^[39]

December “Santa rally” still on track

Seasonality is also working in Europe’s favour.

A recent Euronews analysis showed that:

Since 1987, the Euro Stoxx 50 has averaged a 1.87% gain in December, finishing the month positive about 71% of the time.
The DAX and CAC 40 typically deliver even stronger average December returns of about 2.2% and 1.6%, respectively, with win rates around 70–73%.
Even Spain’s IBEX 35 and Italy’s FTSE MIB usually post average December gains of just over 1%. ^[40]

As of mid‑December 2025:

The STOXX 600 is up roughly 1% month‑to‑date and over 12% in the last 12 months, according to Investing.com. ^[41]
The Euro Stoxx 50 has risen more than 16% year‑on‑year, while the ESM (European Stability Mechanism) notes that by 1 December, Euro‑area equities had outperformed U.S. benchmarks such as the S&P 500 and Nasdaq year‑to‑date. ^[42]

So far, 2025’s Santa‑rally script is intact: modest consolidation in early December, followed by renewed strength as rate‑cut hopes, resilient macro data and year‑end positioning drive flows into European risk assets.

What today tells us about the 2026 outlook for EU equities

Today’s price action lines up with the main themes in the latest 2026 outlooks from major global strategists:

Reflation with higher yields: RBC Wealth Management argues that Europe is balancing U.S. tariff‑led disinflation with domestic reflation forces – from easier ECB policy (deposit rate back to ~2%) to big fiscal programmes like Germany’s infrastructure push. They expect bond yields to drift higher as supply rises, but still see room for equities – especially quality large caps – to perform. ^[43]
International rotation toward Europe: Charles Schwab highlights that international stocks, including European equities, could be poised for another strong year in 2026, helped by accelerating global growth, attractive valuations versus the S&P 500 and the possibility of a weaker dollar. Financials and industrials, which dominate European indices, are seen as key beneficiaries. ^[44]
European equities as leaders in a broader rally: Franklin Templeton’s Global Investment Outlook flags European equities, emerging markets and U.S. small caps as likely leaders in a “broadening” 2026 rally, after several years where U.S. mega‑cap tech did the heavy lifting. ^[45]
Macro backdrop: moderate growth, tamed inflation: The ESM projects euro‑area GDP growth of 1.3% in 2025, 1.1% in 2026 and 1.5% in 2027, with inflation now close to the ECB’s 2% target and markets expecting relatively little policy action through next year. ^[46]

At the same time, risks remain:

Divergent inflation across the euro area – France near 0.9% YoY vs. Spain around 3.0% – complicates ECB decision‑making and could keep rate‑cut expectations in check. ^[47]
Strategists warn that AI‑related exuberance could still deflate, dragging on global tech valuations and possibly triggering a broader “risk‑off” episode if capex disappoints. ^[48]
Geopolitical tensions, new trade tariffs and fiscal debates – especially in Germany and France – may occasionally disrupt the bullish narrative.

Net result: After today’s session, the base case for 2026 remains constructive for EU equities, particularly for:

Banks and insurers (benefitting from positive real rates and steepening curves),
Industrial and infrastructure names linked to automation, energy transition and defence,
High‑quality consumer and luxury brands with global pricing power.

Pure‑play high‑multiple tech, by contrast, looks set for a choppier ride, as Oracle’s warning so clearly reminded the market.

What EU investors are watching next

Looking beyond today’s close, EU stock investors will be laser‑focused on three near‑term drivers:

Friday’s November CPI data for Germany, France and Spain
- Consensus expects Germany around 2.3%, France at 0.9% and Spain near 3.0%, underlining the euro area’s inflation divergence. ^[49]
- Any upside surprise in Germany or Spain could push ECB‑rate‑cut bets further out, helping banks but pressuring growth stocks.
ECB communication into early 2026
- Markets currently price only limited additional easing after the mid‑2024 rate cuts took the deposit rate back to about 2%. ^[50]
- If growth softens faster than expected, the ECB may need to lean more dovish – a scenario that would favour defensive sectors and long‑duration growth.
The durability of the December rally
- Seasonality is on the bulls’ side, but after a double‑digit year‑to‑date gain in major European indices, any negative surprise – on data, AI earnings or geopolitics – could spark profit‑taking into year‑end. ^[51]

For now, though, 11 December 2025 will go down as another “risk‑on” day for EU stock markets: cyclicals in the driver’s seat, tech nursing fresh bruises, and investors cautiously betting that 2026 could deliver another year of gains – provided the macro and AI stories don’t suddenly change.