European stocks fade into the close as DAX outperforms; U.S. yields firm on upbeat data
European equities surrendered early gains to finish mostly lower and near session lows on Friday, with Germany’s DAX the lone gainer. Risk appetite cooled as stronger U.S. consumer sentiment nudged Treasury yields higher, keeping the dollar supported even as inflation expectations eased. Traders leaned defensive into the weekend, BPayNews notes.
Europe close: DAX bucks the slide as peers reverse
Most regional benchmarks turned lower into the close after a mid-session wobble. The DAX rose 0.66% to 24,038.72, briefly up about 1% at the day’s highs, while the CAC 40 fell 0.09% to 8,114.74. The UK’s FTSE 100 dropped 0.45% to 9,667.01, Spain’s IBEX 35 slipped 0.35% to 16,688.51, and Italy’s FTSE MIB eased 0.20% to 43,432.70. Earlier advances faded across France, the UK, Spain and Italy as late-day selling pressure built.
Week in review: Spain leads, France lags
- DAX: +0.80% on the week
- CAC 40: -0.10%
- FTSE 100: -0.55%
- IBEX 35: +1.94%
- FTSE MIB: +0.17%
Wall Street open and rates: Yields climb despite softer inflation expectations
As Europe shut, U.S. stocks were modestly higher, with the Dow and S&P 500 up about 0.18% and the Nasdaq up 0.22%. Treasuries weakened after a stronger-than-expected University of Michigan sentiment reading, pushing yields up 2–3 bps across the curve. The 2-year rose to 3.556% (+2.5 bps), the 5-year to 3.707% (+2.3 bps), the 10-year to 4.131% (+2.3 bps), and the 30-year to 4.790% (+2.7 bps).
Notably, inflation expectations in the survey cooled, with the 1-year reading slipping to 4.1% from 4.5% and the 5-year to 3.2% from 3.4%. Still, firmer growth signals kept yields supported and the dollar underpinned into the New York session, pressuring cyclical European shares and weighing on EUR- and GBP-sensitive sectors.
Commodities and crypto
- Crude oil edged higher by about $0.40 to roughly $60, stabilizing after recent softness.
- Gold ticked up around 0.2%, while silver outperformed, adding roughly 2.4%.
- Bitcoin retreated by about $3,200 to trade near $88,900, reflecting a cautious risk tone.
FX take: Dollar tone firmer as rates reprice
Higher U.S. yields and steady U.S. equities provided a modest bid to the greenback, keeping EUR/USD on the back foot and GBP/USD softer. Cross-asset signals point to a mild risk-off tilt in European trade—equities finished near lows, while the growth-friendly IBEX outperformed on the week. With inflation expectations easing but activity data firming, traders remain sensitive to rate-path repricing and incoming macro surprises into next week’s calendar.
Key points
- European stocks finished mostly lower and near session lows; DAX +0.66% was the outlier.
- Weekly moves: IBEX +1.94% led gains; CAC -0.10% and FTSE 100 -0.55% lagged.
- U.S. consumer sentiment beat expectations; inflation expectations eased to 4.1% (1y) and 3.2% (5y).
- Treasury yields rose 2–3 bps across the curve, lending support to the U.S. dollar.
- Crude firmed slightly; gold and silver advanced; Bitcoin fell about $3,200.
FAQ
Why did European stocks close lower today?
Early gains faded into the close as U.S. data-supported yields moved higher, tightening financial conditions at the margin and weighing on risk appetite. That left most European indices near session lows, with the DAX the exception.
How did bond yields move and why does it matter for FX?
U.S. Treasury yields rose by roughly 2–3 basis points after an upbeat University of Michigan sentiment print. Higher U.S. yields typically support the dollar, pressuring EUR/USD and GBP/USD as rate differentials move in the greenback’s favor.
Which European index outperformed and why?
Germany’s DAX outperformed, closing up 0.66%. The index benefited from strength in select large caps and resilience in rate-sensitive segments despite broader regional softness.
What were the standout weekly moves in Europe?
Spain’s IBEX 35 led weekly gains at +1.94%, while the FTSE 100 and CAC 40 underperformed, down 0.55% and 0.10% respectively. The DAX and FTSE MIB posted modest weekly advances.
What should traders watch next?
Focus stays on high-frequency U.S. data, eurozone PMIs, and any guidance on the policy path from major central bank speakers. Shifts in rate expectations and cross-asset volatility remain the dominant drivers for EUR, GBP and equity risk into next week.
Last updated on December 6th, 2025 at 05:23 am
