European Markets Mixed: Piazza Affari Rises, UBS & Earnings in Focus

European stock markets opened with mixed results on February 4, 2026, with Milan’s Piazza Affari showing particular strength, buoyed by positive performance in the banking sector. Investor attention has shifted back to corporate earnings reports, as numerous European companies prepare to release their quarterly results this week. A stabilization in precious metals prices follows significant selling pressure last week.

Earnings and Economic Data Drive Market Sentiment

UBS reported a net profit of $1.2 billion for the fourth quarter, a 56% increase year-over-year and exceeding consensus expectations. Investors are now anticipating earnings releases from Google later today and Amazon tomorrow. Simultaneously, preliminary Eurozone inflation data for January is expected this morning, ahead of tomorrow’s European Central Bank (ECB) interest rate decision.

Did You Know? UBS’s fourth-quarter net profit reached $1.2 billion, representing a 56% increase compared to the same period last year.

Macroeconomic Factors and Currency Movements

Analysts anticipate a slight decrease in Eurozone consumer prices to an annual rate of 1.7% last month. The consensus expectation is that the ECB will hold interest rates steady at 2% for the fifth consecutive meeting. The Euro/US dollar exchange rate remains relatively stable at 1.183. Gold prices have risen sharply, gaining 2.78%, while crude oil (Light Sweet Crude Oil) has seen a modest increase to $63.57 per barrel.

Italian Market Performance

The spread between the yield on Italian BTPs and German Bunds has narrowed to +59 basis points, with the yield on the 10-year BTP at 3.46%. The FTSE MIB in Milan is up 0.5%, continuing a four-day consecutive rally. The FTSE Italia All-Share index has also risen, increasing by 0.44% to 49,419 points.

Expert Insight: The stabilization of the spread between Italian and German bonds, coupled with gains in the FTSE MIB, suggests a degree of investor confidence in the Italian economy, though continued monitoring of ECB policy will be crucial.

Stock Movers

Leading gainers in Milan include Mediobanca (+4.89%), Banca MPS (+3.10%), Nexi (+1.96%), and ENI (+1.43%). Conversely, Buzzi (-1.41%), STMicroelectronics (-0.92%), Prysmian (-0.58%), and Ferrari (-0.57%) are experiencing declines. Among mid-cap stocks, BFF Bank (+3.86%), Philogen (+2.80%), GVS (+1.48%), and Zignago Vetro (+0.92%) are performing well, while Reply (-4.15%), Cementir (-2.45%), Sesa (-2.23%), and D’Amico (-2.02%) are lagging.

Broader European Market Trends

Frankfurt’s DAX remains near parity (0%), while London has edged up 0.59% and Paris has gained 0.54%. The FTSE Italia Mid Cap is down slightly (-0.28%), as is the FTSE Italia Star (-0.74%).

Frequently Asked Questions

What is the current status of the Euro against the US dollar?

The Euro/US dollar exchange rate is currently at 1.183.

Which bank reported strong earnings this week?

UBS reported a net profit of $1.2 billion in the fourth quarter, a 56% increase year-over-year.

What is expected regarding the ECB’s interest rate decision tomorrow?

Analysts expect the ECB to maintain interest rates at 2% for the fifth consecutive meeting.

Given the mixed signals from earnings reports and macroeconomic data, how might investors adjust their portfolios in the coming weeks?

European Markets Mixed: Piazza Affari Rises, UBS & Earnings in Focus – February 4, 2024