Bullish repricing for equities; Prysmian stands out

European stocks rise on improved risk sentiment and compression of geopolitical risk premia

Mar. 25, 2026 at 9:04am

Got story updates? Submit your updates here. ›

The positive opening of European stock markets reflects a marked improvement in risk sentiment, supported by a favorable repricing of cyclical assets and a compression of geopolitical risk premia. The primary driver remains the macro-geopolitical channel, with reports of a possible de-escalation of the conflict with Iran triggering a partial unwind of energy hedges and a rotation toward higher-beta equities. The retracement in oil prices is acting as a marginal disinflationary shock, easing pressure on inflation expectations and reducing the risk of further aggressive tightening by central banks.

Why it matters

The bullish repricing of equities and the compression of geopolitical risk premia suggest a shift in market sentiment, which could have significant implications for investment strategies and portfolio allocations. The performance of cyclical assets and the potential for reduced central bank tightening are also key factors to watch.

The details

The MIB is up 1.6% at 44,064.82 points, the Paris CAC 40 is advancing by 1.5%, the Frankfurt DAX 40 is up 1.8%, and the London FTSE 100 is gaining 1.0%. Among the secondary indices, the Mid-Cap is up 1.8% at 53,078.87, the Small-Cap is advancing 1.2% at 32,543.65, and Italy Growth is gaining 0.4% at 8,349.60 points. On the MIB, Prysmian is performing well, rising 3.7% to EUR98.32 per share. Enel announced that it purchased 25.2 million of its own ordinary shares between March 16 and 20, while Poste Italiane has accelerated its exchange and tender offer for Telecom Italia.

  • On Tuesday, Enel announced that it purchased 25.2 million of its own ordinary shares between March 16 and 20.
  • On Wednesday, the board of RCS MediaGroup approved the 2025 accounts, closing the year with a net profit of EUR54.8 million.

The players

Prysmian

An Italian multinational company that produces cables and systems for the energy and telecommunications industries.

Enel

An Italian multinational energy company and one of the world's largest utility companies.

Poste Italiane

An Italian postal service and financial services company that is accelerating its exchange and tender offer for Telecom Italia.

RCS MediaGroup

An Italian media company that approved its 2025 accounts on Tuesday.

Michael Barr

A Federal Reserve official who reiterated the need to maintain rates at elevated levels for a prolonged period.

Got photos? Submit your photos here. ›

What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

The takeaway

The bullish repricing of equities and the compression of geopolitical risk premia suggest a shift in market sentiment, which could have significant implications for investment strategies and portfolio allocations. The performance of cyclical assets and the potential for reduced central bank tightening are also key factors to watch.