European markets in the red on Trump’s Greenland tariff warning; autos and uxury under pressure

Indices

European indices are showing a broadly mixed performance, reflecting a balance between sectoral strengths and ongoing macroeconomic uncertainties. The FTSE MIB is trading at 45.8K, down slightly by 0.11%, yet it remains close to its 2025 highs, suggesting underlying stability and resilience. The DAX stands at 25.3K, down 0.22%, indicating a consolidative phase as it tests support near the 25K. The CAC 40 trades at 8.26K, with a steeper decline of 0.65%, signaling increased caution among investors. The FTSE 100, at 10.18K, shows minimal movement and a flat micro-trend, reflecting a neutral outlook as external factors may drive future direction. The IBEX 35 is experiencing positive momentum, up 0.39% at 17.71K, building on its 16-year high in May 2025. The Euro Stoxx 50 is at 6.03K, with a modest decline of 0.19%, warranting close observation for potential trend reversals. These movements suggest a cautious yet opportunistic environment, with potential buy signals in indices like IBEX 35, while others invite a wait-and-see approach.

Stocks

Within the DAX, sector rotation is evident. Siemens Energy AG leads gainers with a 6.32, followed by Zalando SE at 1.74 and RWE AG ST at 1.46, highlighting strength in energy and e-commerce. On the downside, Brenntag AG (-3.97), BASF (-3.67), and Deutsche Telekom AG (-2.91) are under pressure, reflecting sector-specific headwinds.

In the automotive sector, earlier in July 2025, BMW, Volkswagen, and Daimler AG posted gains of 2.1, 1.8, and 1.5, hinting at recovery in demand and production. The luxury sector remains robust, with LVMH Moët Hennessy Louis Vuitton gaining 2.3, underscoring continued consumer appetite despite broader economic concerns. These trends suggest that traders should focus on momentum plays in energy, automotive, and luxury names, while remaining vigilant for sectoral reversals.

Economic News

European markets have recently set record highs, notably in the FTSE MIB and DAX, driven by strong corporate performances and easing inflation pressures. FTSE MIB, for example, rose over 30% in 2025, led by outsized gains in Fincantieri and Telecom Italia. Meanwhile, Eurozone inflation eased to 2.2 in July 2025, below expectations, which may provide central banks with more flexibility and support risk sentiment. However, investors remain attentive to the risk of slowing growth and persistent inflationary pressures, creating a backdrop for cautious positioning and selective opportunities.

Economic Events

There are no significant economic calendar events scheduled for European markets this week. The lack of major catalysts may keep volatility subdued, but it also places greater emphasis on company earnings and sector-specific developments to drive market direction.

Market Sentiment

Overall sentiment across European markets is mixed. Record highs in indices like the FTSE MIB and IBEX 35 highlight pockets of robust optimism, especially where company fundamentals have surprised to the upside. At the same time, the modest declines in DAX, CAC 40, and Euro Stoxx 50 reflect a more cautious stance, likely due to macroeconomic uncertainties and selective profit-taking. The resilience in luxury and automotive stocks suggests that investors are still willing to rotate into sectors with strong forward visibility, while defensive positioning persists in more cyclical or rate-sensitive segments.

Please note that the analysis is for informational purposes only and does not constitute financial advice. Users should conduct their own research.