European Markets Set for Mixed Open as French Tensions Weigh

European stock markets are poised for a mixed opening on Friday, October 23, 2026, as persistent French political tensions and potential street unrest in Milan and Paris weigh on investor sentiment. Meanwhile, Middle East instability has pushed Brent crude toward $114, fueling inflation concerns. The FTSE MIB is expected to rise slightly after a 2.5% drop, while London's FTSE 100 and Paris's CAC 40 are seen opening higher, but Frankfurt's DAX 40 is projected to fall. The French-German bond yield spread jumped to 175 basis points, exceeding 2011-2012 crisis levels, though analysts say a full-scale debt crisis hasn't materialized. Luxury stocks continue to suffer from Middle East conflict and weak Chinese demand, with Gucci and Hermes missing estimates. Italian banks were hit hard, with Intesa Sanpaolo and UniCredit falling sharply, while Moncler gained 2.6% on strong results. US markets closed mixed, and Asian indexes showed varied performance.