European Markets Bounce Back After Positive US Economic Data in November 2025
- How Did European Markets Perform on November 5?
- What US Data Fueled the Rally?
- How Did Eurozone Indicators Compare?
- Which Stocks Stood Out?
- What’s Next for Central Banks?
- Why Does This PMI Data Matter?
- How Are Traders Positioning Now?
- What’s the Big Picture Takeaway?
- Frequently Asked Questions
European stock markets reversed their six-session losing streak on Wednesday, November 5, 2025, as upbeat US economic data injected fresh optimism. The CAC 40 edged up 0.08% to 8,074 points, while the EuroStoxx 50 gained 0.18%. Across the Atlantic, the Nasdaq climbed 0.76% by late afternoon. Key drivers included stronger-than-expected US private sector job growth, PMI figures, and corporate earnings. Meanwhile, Bouygues led Paris gains after securing a €3.3 billion UK nuclear contract. Here’s why traders are cautiously optimistic.
How Did European Markets Perform on November 5?
After six consecutive red sessions – their worst streak since September 2023 – European indices finally caught a break. The CAC 40 squeaked out a 0.08% gain to close at 8,074 points, while the EuroStoxx 50 advanced 0.18% to 5,670. "It’s not much, but after the recent bloodbath, investors will take any green they can get," remarked a BTCC analyst. The turnaround came mid-session following the release of US economic indicators that beat forecasts.
What US Data Fueled the Rally?
Three key reports shifted sentiment:
- ADP Employment: US private sector added 42K jobs in October (vs. 32K expected), reversing September’s 32K loss
- S&P Global PMI: Composite index hit 54.6 (54.8 expected), with services PMI at 54.8
- ISM Non-Manufacturing: Jumped to 52.4 (50 consensus), signaling accelerated growth
The numbers pushed the 10-year Treasury yield up 6.4 bps to 4.153%. "These aren’t blowout figures, but they suggest the US economy isn’t falling off a cliff," noted TradingView data.
How Did Eurozone Indicators Compare?
Europe’s private sector activity grew at its fastest pace since May 2023:
| Indicator | October 2025 | September 2025 | Consensus |
|---|---|---|---|
| Services PMI | 53.0 | 51.3 | 52.6 |
| Composite PMI | 52.5 | 51.2 | 52.2 |
Source: S&P Global
Which Stocks Stood Out?
Bouygues (+2.3%) stole the show in Paris after announcing a €3.3 billion contract to build the Sizewell C nuclear plant in the UK. The construction giant’s 9-month results also beat expectations. Across the pond, tech stocks led the Nasdaq’s 0.76% climb – though honestly, most traders were just relieved to see any green after recent volatility.
What’s Next for Central Banks?
With Sweden’s Riksbank holding rates steady, focus shifts to the Bank of England’s Thursday decision. AllianzGI’s Ranjiv Mann predicts: "We expect unchanged rates pending budget details. The UK’s inflation trajectory and likely restrictive fiscal policy could benefit Gilt markets." Meanwhile, the US government shutdown drags into its 36th day – because apparently, politicians enjoy Groundhog Day.
Why Does This PMI Data Matter?
Purchasing Managers’ Indexes (PMIs) are the canaries in the economic coal mine. When services PMI jumps from 54.2 to 54.8 like in the US, it suggests businesses are expanding despite higher rates. The Eurozone’s parallel improvement hints at regional resilience – though let’s be real, Europe’s economy still moves at a bureaucratic pace compared to the US.
How Are Traders Positioning Now?
Futures markets suggest cautious optimism. The BTCC derivatives desk observed increased hedging activity, particularly in energy stocks. "It’s not full risk-on mode," one trader quipped, "more like dipping a toe in while keeping the life jacket handy." Key levels to watch: CAC 40 holding above 8,000, and Nasdaq 17,500 as resistance.
What’s the Big Picture Takeaway?
This was a relief rally, not a paradigm shift. The data shows economies are growing, but not overheating – exactly what central banks want. As the BTCC team puts it: "Markets needed proof the soft landing narrative still has wings. Today provided enough evidence to keep it airborne, if not soaring."
Frequently Asked Questions
How long was the European market losing streak before this rebound?
Six consecutive sessions - the longest since September 2023.
What was the key US employment data point?
ADP reported 42,000 private sector jobs added in October, reversing September’s losses.
Which company drove CAC 40 gains?
Bouygues surged 2.3% after winning a €3.3 billion UK nuclear contract.
What’s the current 10-year US Treasury yield?
4.153%, up 6.4 basis points on the day.
