EU Stock Market Today, 2 December 2025: Stoxx 600 Steady as Eurozone Inflation Ticks Up to 2.2%

European stock markets traded with a cautiously positive tone on Tuesday, 2 December 2025, as investors digested a slightly hotter‑than‑expected Eurozone inflation print, a powerful rally in Bayer, and ongoing jitters around global interest rates and crypto markets. The pan‑European Stoxx 600 index hovered just above flat, while Germany’s DAX outperformed thanks to a double‑digit surge in Bayer shares and solid gains in bank stocks. ^[1]

Below is a full breakdown of how the EU stock market traded today, the macro drivers behind the moves, and what strategists are forecasting for 2026.

Headline moves: Stoxx 600, DAX, CAC 40 and FTSE 100

By early afternoon in Europe, the main regional benchmarks were modestly higher rather than surging:

Stoxx 600 – The broad pan‑European index was roughly 0.1–0.2% higher around 576 points, recovering from an early dip and extending a powerful rally seen in late November. ^[2]
Euro Stoxx 50 – Blue‑chip Eurozone stocks outperformed, with the index up around 0.6%, helped by gains in financials and Germany’s large caps. ^[3]
DAX 40 (Germany) – Frankfurt’s benchmark climbed strongly, gaining around 0.8% on the day to finish near 23,780, putting its 12‑month advance close to 18–19% and keeping it in sight of record highs. TS2 Tech+1
CAC 40 & Euronext 100 (France) – Paris benchmarks edged higher, with the CAC 40 up only a few basis points as bank strength offset softness in healthcare and consumer names. TS2 Tech
FTSE 100 (UK) – London’s blue‑chip index was little changed to modestly positive; one mid‑session snapshot showed it up about 0.15–0.2%, underperforming the DAX but broadly aligned with the Stoxx 600. ^[4]

Despite Monday’s wobble, the medium‑term picture remains constructive. A Reuters‑linked analysis via Investing.com notes that Germany’s DAX and the UK’s FTSE 100 are on track for annual gains above 18%, while France’s CAC 40 lags with roughly 10% for 2025, held back by domestic political uncertainty. ^[5]

Inflation at 2.2%: why today’s CPI data mattered

The key macro event for Europe today was the flash Eurozone inflation report for November:

Headline CPI (YoY): 2.2%, up from 2.1% in October and slightly above the consensus expectation of around 2.1%. ^[6]
Core inflation (excluding food and energy): roughly 2.4%, unchanged, with services inflation nudging to about 3.5%. ^[7]
Monthly CPI: prices actually fell around 0.3% on the month, highlighting that disinflationary forces remain in play despite the small uptick in the annual rate. ^[8]

Economists at ING argued that this “slight uptick” makes the December decision “easy” for the European Central Bank: keep the deposit rate unchanged at 2.0%, with little pressure either to hike or to begin cutting. Their base case is that inflation hovers near current levels for some time, helped by softer energy and goods prices but supported by still‑firm services costs. ^[9]

Bloomberg and other wire services echoed that message, noting that most analysts now expect the ECB to hold rates steady through much of 2026, in contrast to the U.S. Federal Reserve and Bank of England, where markets still price in additional rate cuts over the coming year. ^[10]

Market impact

For equities, the inflation print reinforced a familiar narrative:

No fresh tightening risk – Inflation is close enough to the 2% target that investors no longer fear a new round of ECB hikes.
But “higher for longer” lives on – The uptick in headline CPI and sticky core inflation make near‑term rate cuts unlikely, which supports banks and insurers but keeps pressure on growth and real‑estate names sensitive to discount rates. TS2 Tech+1

That rate story showed up clearly in today’s sector moves.

Sector snapshot: banks rally, healthcare lags, Bayer explodes higher

Banks: the big winners of “higher for longer”

Across Europe, bank stocks led the market:

A Reuters market update cited gains of roughly 0.9% for the Stoxx 600 banks sub‑index, building on a strong year for lenders as net interest margins benefit from elevated rates. ^[11]
Spanish lenders were notably strong, with Banco Santander in focus after selling a stake in its Polish unit; this helped push Spanish indices close to record territory. ^[12]

For France and the broader Euronext group, TS2.tech highlighted that heavyweight names like BNP Paribas, Crédit Agricole and ING are significant components of both the CAC 40 and Euronext 100, meaning the rotation into banks translated almost mechanically into small index gains. TS2 Tech+1

Healthcare: from safe haven to drag

The healthcare sector went the other way and was one of the day’s few laggards:

Multiple intraday reports described European healthcare shares down around 0.2–0.3%, with large caps such as AstraZeneca and Novo Nordisk under pressure after a period of strong outperformance. ^[13]

The move reflects a classic rotation: as rate‑sensitive cyclicals and financials come back into favour, expensive “defensive growth” names in healthcare are seeing profit‑taking, especially with U.S. drug‑pricing politics back in the headlines.

Bayer: a legal twist ignites a 15% surge

The stand‑out single‑stock story of the day was Bayer:

The U.S. administration and Solicitor General backed Bayer’s bid for Supreme Court review in its long‑running Roundup weedkiller litigation, significantly improving the odds of a more predictable legal outcome. ^[14]
In response, Bayer shares jumped between roughly 11% and 15% intraday, marking their best day in many years and lifting the stock to its highest levels since early 2024. ^[15]

Given Bayer’s heavy weight in the DAX, this single rally contributed a large slice of the index’s outperformance versus the broader Stoxx 600. Commentators noted that, even after today’s spike, Bayer still trades at a discount to European pharma peers thanks to lingering legal uncertainty—so investors are now debating whether this is the start of a genuine re‑rating or just a relief rally. TS2 Tech+1

Defence stocks: pricing in peace in Ukraine

Another important theme is playing out beneath the surface: European defence stocks are coming under pressure:

A global “Investor Brief” noted that Europe’s aerospace and defence index fell about 2% on Monday, following a 3.4% slide on Friday, marking its worst week since March as hopes for progress in U.S.‑brokered peace talks on Ukraine gained traction. ^[16]

If the prospect of a resolution to the nearly four‑year war continues to build, defence names could see more profit‑taking after a multi‑year outperformance, even as other cyclicals and value stocks attract fresh capital.

Industrials and energy: clawing back Monday’s losses

Monday’s sell‑off hit industrials and energy hard—one Reuters‑based note estimated that European industrials fell around 1.3%, making them the biggest drag on the Stoxx 600 at the start of December. ^[17]

On Tuesday, the picture was more balanced:

Industrials recouped part of those losses as bargain‑hunters stepped in.
Energy stocks found support from stable oil prices, with Brent trading in the low‑$60s and geopolitical risk—ranging from Ukraine to Venezuela—keeping a floor under crude. ^[18]

Steel and cyclicals: 2026 recovery already in the price?

Beyond day‑to‑day index moves, several sell‑side notes published today shed light on where analysts think the next leg of performance may come from.

A detailed Jefferies report on the European steel sector argues that:

The industry likely bottomed in 2025, with benchmark hot‑rolled coil prices expected to recover to around $750/tonne in 2026, roughly $100 above recent lows.
EU steel demand should benefit from tighter import quotas, higher tariffs on non‑quota imports (potentially up to 50%), and the introduction of the Carbon Border Adjustment Mechanism (CBAM) from 2026, which will raise the cost of imported, higher‑emission steel. ^[19]

However, the note also warns that equity markets have moved ahead of the fundamentals:

Major steel names such as ArcelorMittal, SSAB, Salzgitter and Voestalpine are already up 40–65% year‑to‑date, far outpacing the roughly 14% gain in the Stoxx 600, and trade around 5x 2026 EV/EBITDA, above their 10‑year average. ^[20]

In other words, a 2026 recovery is largely priced in. For these shares to keep working, analysts say the sector will need not just a cyclical rebound, but further upside surprises on both prices and volumes.

Flows and buybacks: why strategists still see upside into 2026

While valuations in some pockets look stretched, flow data and corporate actions suggest European equities still have structural support:

Barclays analysts, cited in today’s Investing.com/Reuters piece, estimate that European companies repurchased €19.3 billion of their own shares in November, close to the highest monthly level since 2017. Buybacks accounted for about 2.3% of total equity trading volume, with energy and financials particularly active. ^[21]
Crucially, the bank believes around 70% of authorised 2026 buyback programmes are still unexecuted, and models roughly €50 billion in fresh announcements in Q1 2026.

On top of that, Barclays forecasts around 8% earnings‑per‑share growth for European equities in 2026, led by sectors such as autos, telecoms and energy that still offer high free cash‑flow yields. ^[22]

A separate analyst survey referenced in today’s NEWS.am Investor Brief adds nuance:

Most strategists expect major global indices—including Europe—to be higher by the end of 2026, but
More than half also forecast at least one market correction in the coming months, particularly if AI‑heavy U.S. tech names see a valuation reset.
Because European markets are less dominated by a few mega‑cap AI stocks, some analysts argue the region could outperform the U.S. on a risk‑adjusted basis in the medium term. ^[23]

Global backdrop: from crypto shock to cautious stabilization

Today’s EU session played out against a choppy global backdrop:

Monday saw a “risk‑off wave” across equities, bonds and cryptocurrencies, with Bitcoin’s slide helping to trigger nearly a billion dollars in forced liquidations, according to multiple market summaries. ^[24]
By Tuesday, an STL.News global wrap and other market updates described overseas markets as “stabilising”, with Asia and Europe posting modest gains and crypto prices trading in a narrower range. ^[25]

For European stocks, that meant:

Less panic selling than on Monday, but
No full‑blown risk‑on, as elevated bond yields—partly driven by expectations of a December rate hike from the Bank of Japan—continue to cap appetite for long‑duration growth assets. TS2 Tech+1

What today’s moves mean for the EU equity outlook

Putting the pieces together, today’s EU stock market session suggests several key conclusions for investors:

“Higher for longer” is now the consensus in Europe
Eurozone inflation at 2.2% and stable core at 2.4% keep the ECB firmly on hold. That’s a tailwind for banks and insurers, but a headwind for speculative growth and parts of real estate. ^[26]
Quality cyclicals and value remain in favour
The outperformance of banks, industrials and selected materials—combined with the sharp rally in Bayer—highlights investors’ preference for cash‑generative names with clear catalysts, rather than high‑multiple defensives. ^[27]
Defence stocks are beginning to price in geopolitical mean‑reversion
With Ukraine peace efforts back on the agenda, aerospace and defence names are seeing profit‑taking. If diplomacy progresses, that could free up capital for other cyclical sectors but may also weigh on indices where defence has been a key driver. ^[28]
Corporate actions and buybacks are an underappreciated support
Elevated share‑repurchase activity and large, unutilised 2026 buyback authorisations give European boards a powerful toolkit to support earnings per share and cushion any correction, especially in sectors like energy, autos and telecoms. ^[29]
Near‑term volatility risk remains high
Analyst surveys and the experience of the last 48 hours—crypto swings, bond‑yield spikes, and geopolitical headlines—underline that short‑term corrections are likely, even if the two‑year trajectory for European indices still points upward. ^[30]

Key events and data EU stock investors should watch next

Looking beyond today’s session, here are the main catalysts European equity investors will be watching in the coming days and weeks:

ECB meeting in mid‑December – Any shift in language on growth or inflation could move rate expectations and bank valuations. ^[31]
Fed and BoE decisions – Markets still price further cuts from both; a surprise on either side could reprice global yields and FX, with knock‑on effects for EU exporters and financials. ^[32]
Updated Eurozone PMIs and sentiment data – These will show whether the region’s “lukewarm” growth backdrop is improving or deteriorating into 2026. ^[33]
Sector‑specific stories –
- Progress on Bayer’s Supreme Court case and broader U.S. drug‑pricing policy,
- Implementation details for steel import quotas and CBAM,
- Corporate actions on Euronext (Theon’s rights issue, Nokia’s Paris delisting, Shelf Drilling’s Oslo exit). TS2 Tech+2Investing.com+2

If inflation stays near target, growth avoids a meaningful downturn and central banks manage a gradual easing cycle, today’s pattern—a steady Stoxx 600, a strong DAX led by idiosyncratic winners, and ongoing leadership from banks and select cyclicals—may be a preview of how Europe trades into 2026.