Market wrap: European indices recover losses after a weak open 🔼 EURUSD falls below key support

The broad European Stoxx 600 index is down 0.3% today and is gradually recovering its losses, after falling nearly 1% in early trading to its lowest level in three months. European equities remain under pressure from elevated oil prices, with Brent crude futures trading above $107 per barrel, as well as a further rise in bond yields, which is worsening the inflation outlook and weighing on equity valuations.

• Germany’s DAX is trading 0.2% lower, although it fell more than 1% earlier in the session and dropped to its lowest level since July 24, marking a second consecutive day of declines. Banks were among the main sources of pressure on the index.
• Inflation in France accelerated to 2.4% YoY in August, rose to 3.4% YoY in Poland and accelerated to 4.3% YoY in Spain. Meanwhile, Slovakia’s annual inflation rate eased to 3.1%.
• Germany’s ZEW Economic Sentiment Index fell to -34.7 points, compared with a forecast of 40.0 and 34.2 previously.
• The ZEW Current Conditions Index improved to -47.1 points, versus expectations of -52.1 and -61.1 previously.
• EURUSD is having a second consecutive very weak session and is trading around 1.153. The US 10-year Treasury yield rose by 8 basis points to 5.04%, while Germany’s 10-year Bund yield increased by 4 basis points to 3.57%.
• Wall Street futures are trading lower ahead of the US market open. Oil is up around 0.5%, while WTI is gaining more than 1%.
• Bitcoin is down 2%, falling below $77,000, while gold is pulling back by around 0.5%. Among commodities, cocoa stands out on the downside, falling more than 3% today.

Euro Stoxx 50: biggest stock movers

Among the strongest Euro Stoxx 50 components, Rheinmetall stands out with a gain of around 2%, followed by ASML, up 1.5%, and Schneider Electric, rising 1.3%. Iberdrola and Prosus are also in positive territory, gaining around 1.0% each, while Infineon and BMW are up approximately 0.9%. At the other end of the spectrum, Wolters Kluwer is down 3.1%, while LVMH and Hermès are falling 2.0% and 1.9%, respectively. BASF and Deutsche Bank are also under pressure, losing around 1.8% each, while SAP and UniCredit are down approximately 1.6%. The distribution of returns highlights significant market selectivity, as some technology, industrial and defensive stocks continue to post clear gains despite the broader index decline.

Source: XTB Research

DAX under pressure from oil prices and concerns over the technology sector

Germany’s DAX remains under pressure as rising oil prices, caution ahead of monetary policy meetings by major central banks, including the Fed tomorrow, and renewed concerns over AI-related risks weigh on investor sentiment. The index fell to around 25,425 points, losing approximately 0.5%, after dropping as low as 25,339 points earlier in the session. Energy prices remain an additional headwind: Brent briefly climbed to $108.65 per barrel following fresh attacks on oil infrastructure and shipping in the Gulf region before retreating towards $107.40.

• The strongest pressure is visible in the technology sector. Infineon Technologies shares are down nearly 9% after warnings from Anthropic CEO Dario Amodei about the potential for large-scale AI-powered cyberattacks, combined with a more cautious tone from OpenAI CEO Sam Altman, revived concerns over the pace of artificial intelligence development. Siemens Energy is down 7.3%, Hochtief more than 7% and RWE 3.7%, while MTU Aero Engines, Siemens and Deutsche Bank are losing around 2–2.5%.
• Declines are also affecting Heidelberg Materials, E.ON, Continental, Daimler Truck, GEA Group and Commerzbank, whose shares are down approximately 0.5–1.2%. Rising oil prices and bond yields are simultaneously increasing concerns about persistent inflationary pressure and elevated financing costs.
• On the other side of the market, SAP is gaining around 3.2%, Deutsche Börse is up 3% and Bayer around 2.9%. Stronger gains are also being recorded by Scout24, Beiersdorf, Fresenius Medical Care, Symrise and Siemens Healthineers, while Hannover Re, Deutsche Telekom, Zalando, Henkel, Rheinmetall, Munich Re, Merck and Brenntag are also trading notably higher.

DE40, EU50 and EURUSD charts (D1 interval)

The DAX futures contract has come close to its 200-session exponential moving average for the first time since June 2026. MACD is not providing positive signals, while RSI has fallen to around 38, approaching oversold territory. Nevertheless, the upward channel in DE40 remains intact, while today’s bearish candle has a relatively long lower wick, suggesting that sentiment improved around midday. The EMA50 area near 25,700–26,000 points appears to be the key resistance zone for the index. Meanwhile, the EMA200, shown by the red line, remains an important support area around 25,000–25,100 points.

Source: xStation5

The DAX is not alone in coming under pressure. Euro Stoxx 50 futures fell towards 6,250 points today, reaching their lowest level since late July. French and UK benchmarks are also performing poorly. From the perspective of price action and moving averages, the key resistance area is around 6,400 points, while support is located near 6,100 points.

Source: xStation5

EURUSD has extended its decline below 1.16 in recent sessions and remains below a key former support level, which has now turned into resistance, marked by the red line. The next important support area is located around 1.135.

Source: xStation5

The Euro Stoxx 50 is falling today, extending its one-month decline to 4.3%, although the index remains around 8% higher year-to-date. Market breadth is weak in the short term: only 42% of constituents are rising today, while just 30% have generated positive returns over the past week. Technology is exerting the strongest pressure, falling around 3.4%, followed by industrials with a 2.6% decline, while the defensive health care and consumer staples sectors are gaining 1.8% and 1.6%, respectively. The index remains approximately 4.4% below its all-time high, while only 44% of its constituents are trading above their 50-day moving averages, confirming weaker momentum. Valuation remains relatively demanding, with the index trading at a P/E ratio of 18.1, while the technology sector is particularly expensive at around 41.5 times earnings.

Source: XTB Research