EUROPEAN MARKET
last updated: 9/29/2025 9:19:23 AM NY time
European Market Update - September 29, 2025
Market Overview
European stock markets showed mostly positive momentum today, with key indices such as the German DAX and the Euro Stoxx 600 recording gains. The German DAX is supported by strong performances in the medical, mining, renewable energy, and IT sectors, while banking and retail sectors face some pressure due to consumer spending concerns and regulatory challenges.
Spain's IBEX35 led gains, buoyed by an upgrade in Spain's credit rating by Fitch, Moody's, and S&P, and favorable macroeconomic data including stronger-than-expected GDP growth for Q2 2025.
Economic Sentiment and Data
The Eurozone's economic sentiment index for September came in slightly above expectations at 95.5, indicating a modest improvement but still reflecting ongoing challenges, especially in the services sector. Consumer sentiment remains negative, and industrial sentiment shows signs of stabilization.
Spain's inflation data showed a slight deflationary trend with CPI down -0.4% month-over-month, raising concerns about potential deflation risks in the region.
Investors are also closely watching upcoming U.S. economic data releases, including the PCE inflation report, which will influence global market sentiment and monetary policy expectations.
European Central Bank and Monetary Policy
The European Central Bank (ECB) is nearing the end of its easing cycle, with policymakers signaling caution. Market expectations for further rate cuts have softened amid stronger labor data and inflation concerns. ECB officials, including Schnabel and Lane, are scheduled to speak today, which may provide further guidance on monetary policy direction.
Key Instruments and Technical Insights
| Instrument | Last Close | Daily Pivot Points (R3, R2, R1, S1, S2, S3) | Weekly Pivot Points (R3, R2, R1, S1, S2, S3) | Technical Bias |
|---|---|---|---|---|
| EUR/USD (EU) | 3.08 | 3.15, 3.13, 3.11, 3.07, 3.05, 3.03 | 3.4, 3.3, 3.2, 3.0, 2.8, 2.7 | Mixed: Long on EMAs and SMAs (10-200), Short on Hull (9), Neutral on Ichimoku and RSI; Overall daily trading zone is SHORT, short-term bias NEUTRAL with bullish order book sentiment |
| EU50_EUR (Euro Stoxx 50) | ~5539.8 (R1 daily) | 5626.8, 5568.8, 5539.8, 5452.8, 5394.8, 5365.8 | 5719 (R3 weekly) and others | Trading zone LONG, short-term bias LONG, bullish order book sentiment |
| DE10YB_EUR (German 10Y Bond) | 129.187 | 129.769, 129.491, 129.274, 128.779, 128.501, 128.284 | 131.604, 130.959, 130.008, 128.412, 127.767, 126.816 | Predominantly SHORT on EMAs and SMAs, but RSI LONG; 9/13 count signal is BUY |
| DE30_EUR (DAX Index) | 23741 | 24273, 24026.6, 23903.3, 23533.6, 23287.2, 23163.9 | 24591.8, 24233.1, 24006.6, 23421.4, 23062.7, 22836.2 | Mixed technicals: EMA(10,20) LONG, EMA(30,50) SHORT, EMA(100,200) LONG; 9/13 count signal BUY |
| EUR_SEK (Euro/Swedish Krona) | 11.03659 | -- | -- | Short-term trading bias NEUTRAL, bullish order book sentiment, mixed technical indicators |
Corporate and Sector Highlights
- Lufthansa announced layoffs of 4,000 employees to protect margins; stock price rose 1.6%.
- Kloeckner plans to sell its U.S. plants; stock price up over 3.5%.
- Defense companies Rolls-Royce, Rheinmetall, and Hensoldt gained over 1% amid rising orders and geopolitical tensions.
- NIBE Industrier received positive investment bank recommendations; stock up 6%.
- UCB shares surged over 15% following promising new therapy research results.
Market Sentiment and Outlook
European markets are cautiously optimistic, balancing positive corporate earnings and sector performances against macroeconomic uncertainties and geopolitical risks. The ECB's policy stance and upcoming U.S. economic data releases remain key focus points for investors. The euro is under pressure but may find support if market expectations for rate cuts adjust.
Investors are advised to monitor technical levels on major indices and currency pairs, as well as central bank communications, to navigate the evolving market landscape.
The top five gaining, losing, and most active European stocks for the day. System updates based on current market activity – see the most relevant stocks in real time.