Indices

European equity markets are demonstrating notable strength, with the main indices extending their upward momentum. The FTSE 100 (UKX) is currently trading at 10.37K, marking a gain of 60.53 points (+0.59%). This movement reflects renewed resilience in the UK market, with the index decisively reclaiming the 10,000 mark—a psychologically important threshold suggesting underlying confidence among investors.

The DAX (DAX) is trading at 24.72K, up by 230.4 points (+0.94%), and is approaching its historic highs from October 2025. This trend indicates persistent strength in German equities, likely driven by robust corporate earnings and constructive macroeconomic data.

Meanwhile, the Euro Stoxx 50 (SX5E) stands at 6K, climbing 72.7 points (+1.23%). The index has surpassed prior records from November 2025, underscoring the broad-based optimism across major European markets. Collectively, these advances signal a clear buy bias, with technical breakouts and new highs supporting further momentum-driven positioning.

Economic News

Investor sentiment has been buoyed by positive corporate earnings and encouraging economic indicators, which have collectively fueled the ongoing rally. The upcoming speech by ECB Chief Economist Philip Lane at 13:00 UTC today is being closely watched, as it may offer insights into future eurozone monetary policy and reinforce or temper current market enthusiasm. The combination of strong earnings and macro data is fostering a risk-on environment, with the potential for additional volatility depending on central bank commentary.

Economic Events

Several key economic events are scheduled to shape market sentiment in the coming days. Besides today’s ECB remarks, US Advance Retail Sales data is set for release on February 10 at 14:30 UTC, followed by the US Nonfarm Payrolls and Unemployment Rate for January on February 11 at 14:30 UTC. The UK GDP Q4 first estimate will be reported on February 12 at 08:00 UTC, providing crucial direction for UK assets. Eurozone CPI (M/M) for January, due February 13 at 14:30 UTC, could further influence ECB policy expectations and impact European equities and currencies. These events are likely to drive heightened volatility, presenting both opportunities and risks for active traders.

Market Sentiment

Overall market sentiment remains decisively positive, as reflected in the strong performance of European indices and the willingness of investors to push benchmarks to new highs. This bullishness is underpinned by favorable earnings releases and macroeconomic data, although the upcoming series of economic announcements may test the durability of this optimism. The prevailing mood suggests a continuation of momentum trading strategies, with watchful attention to any signals of policy shifts or macro surprises.

Recommendations

Given the current market backdrop, traders may consider maintaining or adding to long positions in major European indices, particularly while the technical uptrend remains intact. It is advisable to implement trailing stop-loss orders to lock in recent gains and to set take-profit levels near interim resistance points or projected highs. Caution is warranted around the timings of scheduled economic events, as they may trigger sharp, short-term moves. Active monitoring of central bank communications and macro data releases will be essential for timely risk management and capitalizing on emerging opportunities.