Mucahithan Avcioglu
06 October 2026•Update: 06 October 2026
European stock markets closed higher Tuesday as investors assessed mixed economic data and the European Central Bank policymaker comments on inflation and borrowing costs.
The pan-European Stoxx 600 rose 3.01 points, or 0.48%, to 636.63.
Germany’s DAX gained 194.98 points, or 0.77%, to 25,449.19, while Britain’s FTSE 100 added 43.75 points, or 0.42%, to 10,541.69.
France’s CAC 40 advanced 30.97 points, or 0.40%, to 7,865.07.
Italy’s FTSE MIB increased 443.02 points, or 0.87%, to 51,261.40, posting the strongest percentage gain among the five major national benchmarks. Spain’s IBEX 35 climbed 144.50 points, or 0.75%, to 19,444.20.
German manufacturing orders fell 10.6% month-on-month in August, following a revised 3.2% increase in July, according to the Federal Statistical Office. The decline largely reflected a reversal in large orders for aircraft, ships, trains and military vehicles. Excluding large-scale orders, new orders slipped 0.1%.
Eurozone retail trade volume increased 0.1% in August after falling 0.6% in July, said Eurostat. Sales rose 0.8% year-on-year. Non-food sales increased 0.5% month-on-month, while automotive fuel sales dropped 1.9%. Across the EU, retail trade rose 0.1% monthly and 1.2% annually.
In France, manufacturing output rebounded 0.3% in August after declining 0.8% in July. Overall industrial production, however, fell 0.3%, following a 0.6% contraction, according to the national statistics institute INSEE.
Meanwhile, Bank of Finland Governor Olli Rehn warned that a prolonged Middle East war would increase the risk of higher energy prices spreading to other prices and wages.
The European Central Bank (ECB) Council member said the spillovers had not yet emerged, while rising long-term interest rates were slowing growth and limiting the transmission of energy costs to broader inflation.
Rehn said the ECB would continue making interest rate decisions meeting by meeting, based on incoming information, amid heightened uncertainty.