Today's session on European stock exchanges started on a positive note. Futures contracts on most major indices were in the green, indicating moderate optimism among investors. The German DAX also opened in positive territory, suggesting that the market is trying to maintain positive momentum despite recent geopolitical turmoil and corrections in the USA. Contract valuations are rising by about 0.1-0.2%. The leader of growth today is Spain, whose IBEX35 index is rising by about 0.6% on the wave of good macroeconomic data.
On the global stage, investors are analyzing the latest decisions of Donald Trump's administration. The former US president announced the introduction of additional tariffs, this time mainly affecting the pharmaceutical sector.
Source: Bloomberg Finance LP
In Germany itself, the DAX index is supported today primarily by the financial sector and industrial companies, which benefit from improved sentiment in the broader market. On the negative side, the technology sector stands out, weighing down the index and limiting its growth potential.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Macroeconomic data:
A positive highlight for European markets turned out to be the latest data from Spain. GDP for the last quarter grew more than economists had expected, supporting the narrative of the eurozone economy's resilience despite global trade tensions.
- GDP (q/q) (Q2): 0.8% (forecast 0.7%; previously 0.6%)
- GDP (y/y): 3.1% (forecast 2.8%; previously 2.8%)
However, investors remain cautious, waiting for afternoon publications from across the ocean. Key will be the PCE inflation data – the Federal Reserve's favorite measure. The reading may provide clues about the future path of interest rates. The market's attention will also be drawn to consumer sentiment readings and inflation expectations from the University of Michigan, which may confirm or undermine the strength of US domestic demand.
DE40(D1)
Source: xStation5
The chart shows that the realization of the RGR pattern is becoming increasingly unlikely. The price bounced off the neckline, which weakened the downward potential and halted further supply pressure. An additional technical support remains the EMA100 average, which stabilizes the quotations and strengthens the defensive barrier for buyers.
The baseline scenario for the next sessions seems to be entering a consolidation phase. Its probable range is determined by FIBO retracement levels from 23.6 to 50. Only breaking one of these limits may provide a stronger directional signal.
Company news:
Alten (ATE.FR) — The French company published results that exceeded expectations for operating profit. Shares are up 1.8% at the opening.
Volkswagen (VOW1.DE) — The German automotive giant is halting production at one of its electric car factories. The stock is down 2%.
Daimler (DTH.FE) — The truck manufacturer is down more than 5% following the announcement of new US tariffs affecting trucks.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
