Market Wrap: Tech stocks stabilize sentiment in Europe 📈 Adidas and Puma resilient despite Nike’s sell-off?

Euro Stoxx 50 futures are trading higher despite mixed sentiment at the start of Friday’s European session. Larger moves are visible at the single-stock level, where investors are reacting mainly to analyst recommendations, the condition of the consumer sector, and the relative strength of industrial and defense names. Technology stocks are clearly outperforming, from Germany’s Infineon to Finland’s Nokia.

• The US dollar continues to strengthen across global markets, while Treasury yields are also moving higher. Despite this, US equity indices are trading higher ahead of the Wall Street open.
• Bitcoin has risen above $86,000 despite concerns over higher yields and continues to perform strongly, while gold is stabilizing near $4,170 per ounce.
• Sentiment in Europe is mostly positive, with the Euro Stoxx 600 gaining 0.5%, while Germany’s DAX is up 0.6%. Infineon is the strongest performer in the index, with shares rising by around 4%.
• Commerzbank is down around 1% after RBC downgraded the stock to “Sector Perform,” with a price target of €40.
• Adidas erased an initial decline of around 1% and is now trading about 0.5% higher, resisting weaker sentiment toward the apparel sector following Nike’s deteriorating outlook and almost 8% post-earnings share-price decline.
• Puma initially fell by almost 3%, but the stock ultimately avoided a negative reaction to worsening sales prospects in the global sportswear sector and is now up nearly 1.5%.
• In the MDAX, Hensoldt stands out with a gain of around 1.6%, while Porsche is up about 1.4%.
• Thyssenkrupp is gaining around 1%, benefiting from relatively better sentiment toward industrial and defense-related stocks.
• In the SDAX, LPKF is the strongest performer, up around 1.9%, while Douglas gains roughly 1.7%. Deutsche Pfandbriefbank is up around 1.1%, while Suedzucker is gaining about 1%.

EU50, DE40 charts (D1 interval)

The Euro Stoxx 50 futures contract (EU50) has pulled back and is now trading near its 200-day exponential moving average, EMA200 (red line), for the first time since May 2026. A key support area is around 6,100 points, near the EMA200, while resistance is located around 6,370 points, close to the EMA50 and reinforced by recent price reactions.

Source: xStation5

The DAX futures contract is testing the area around the EMA200 (red line) and has so far managed to hold 25,100 points as a key support level. A break below this area could open the way for a deeper decline toward 23,800 points, where notable price reactions were seen around the turn of spring and summer 2026. As with the EU50, an important resistance level appears to be the 50-day exponential moving average, EMA50, currently located near 25,830 points.

Source: xStation5

Today’s trading in the Euro Stoxx 50 shows a clear sector split, with technology and industrial stocks leading gains, while banks and health care are among the weakest areas. Infineon is the strongest performer, rising around 4.4%, while Nokia and ASML are also performing well, gaining approximately 2.1% and 1.9%, respectively. Among defensive names, Danone stands out with a 2.4% rise, while Schneider Electric and Rheinmetall are both gaining around 2%, supporting the broader industrial segment. The strongest selling pressure is concentrated in Sanofi, which is down 4%, and in European banks, with UniCredit, Deutsche Bank, BBVA, Santander, Intesa and BNP Paribas all among the weakest components of the index. Overall, today’s market picture points to a rotation toward technology and industrials, while investors reduce exposure to financials, with weakness in parts of the health-care sector adding to the divergence within the index.

Source: XTB Research

The Euro Stoxx 50 remains in a short-term correction, with the index down around 1.5% on both a daily and weekly basis and 2.9% over the past month, although it is still up 6.6% year-to-date. The benchmark is currently around 5.7% below its all-time high, while the maximum drawdown over the past 12 months reached 10.9%, meaning the current decline still looks relatively moderate. Market breadth, however, remains weak: only 48% of index members are trading above their 200-day moving average, while just 18% are above the 50-day moving average, highlighting narrow and uneven short-term momentum. At the same time, 64% of index constituents are currently in positive territory, compared with only 24% over the past week and 26% over the past month, suggesting an attempt at a short-term rebound following earlier selling pressure. Valuation does not appear extreme, but the index can hardly be described as cheap either: the trailing P/E stands at around 17.7, EV/EBITDA at 12.2 and EV/EBIT at 19.3. Sector performance remains highly differentiated, with technology still strong on a year-to-date basis, while consumer discretionary stocks remain under significant pressure and are down almost 40% since the start of the year. Overall, the Euro Stoxx 50 presents a mixed picture: the longer-term return remains positive, but weak market breadth and the low share of stocks trading above key moving averages suggest that a more durable improvement in sentiment would require broader participation in the rebound.

Source: XTB Research

BofA warns of a correction in Europe but remains positive on defense

Bank of America expects European equities to underperform despite an improving economic backdrop. The bank’s strategists point to high interest rates, an unusually low equity risk premium, and ambitious earnings and margin expectations, forecasting the Stoxx 600 at 610 points by year-end and 580 points by Q2 2027, nearly 10% below current levels.

BofA prefers more defensive sectors such as food and beverages and pharmaceuticals, while taking a more cautious view on banks and cyclical stocks. European defense remains an exception, supported by rising military spending. BofA upgraded Dassault Aviation and Saab to “Buy,” citing stronger earnings visibility, margins and future demand prospects.

SAAB share price chart (D1 interval)

Shares of Swedish defense group Saab are trading around 20% below their all-time highs and are attempting to hold above the 50-day exponential moving average, EMA50 (orange line). An important support area is currently around 590, near the EMA200, while resistance is located around 690, where previous price reactions occurred.

Source: xStation5