DE40: Another day of loss in Europe. The dollar recovers.

European indices continue yesterday's sell-off amid concerns about French politics and budget. DE40 loses 0.4%, ITA40 falls by 0.6%. EU50 and UK100 are down by 0.15% and 0.25%, respectively. The dollar has recovered some losses against the euro, caused by Donald Trump's dismissal of Lisa Cook. EURUSD falls by 0.5%. The market is in a phase of waiting for NVIDIA's results.

European stock exchanges open with another day of declines. These are mainly due to the correction of last week's gains following a change in sentiment and internal problems in France. A vote of no confidence in the French government could significantly delay budget approval, which would have negative consequences for the second-largest economy in Europe.

German business sentiment improves according to the IFO report published earlier this week, but this mood is not shared by German consumers.

The GfK consumer confidence index falls below expectations:

• Published: -23.6 (expected -21.7, previous -21.7)

The German Retail Association is asking the government for support amid concerns about the labor market and consumption.

Collapse in British retail companies. Consumer sentiment in the UK continues to deteriorate, with households tightening their belts in the face of rising bills, inflation, and increasingly bleak prospects in the labor market. Deutsche Bank warns the British sector of further declines. Associated British Foods falls by 5%, Wickes and Kingfisher receive investment downgrades.

The CBI report shows a decline in sales above expectations.

• Published: -32 (expected -28, previous -34)

DE40 (D1) 

Source:Xstation

The price has broken down from the previous medium-term ascending triangle formation, extending the lower boundary of the formation. A sign of trend weakness is the demand gap against the resistance set by the local peak. Currently, the price has stopped at the EMA50 average. The next support zone will be a less steep upward trend line, additionally supported by the EMA100 average. If the price also breaks this limit, it may signal a medium- or even long-term trend reversal, and the price may then move towards the EMA200 and the June low at the level of 23,000 points.

Company News:

JD Sports (JD.UK) - The British retailer of clothing and sports shoes recorded another drastic sales decline of 3%. However, investors remain confident, and the stock price rises by 2.5%.

Rio Tinto (RIO.UK) - The CEO announces a restructuring of the company into units specializing in the extraction of specific raw materials. The division will be into iron, aluminum, lithium, and copper. The company's shares gain 0.5%.

Hochschild Mining (HoC.UK) - The company has lowered its annual outlook due to disappointing reports from its Brazilian mines. The stock price collapses by 16%.

Rheinmetall (RHM.DE) - Lockheed Martin proposes a partnership with the German defense giant in the production of missile systems. Rheinmetall currently mainly produces anti-aircraft missiles, and the potential partnership, currently being discussed with Lockheed Martin, aims to expand production to include tactical ATACMS missiles and air-to-ground Hellfire missiles. Reports the WirtschaftsWoche magazine. Rheinmetall's stock price rises by 0.2%.