European Trading Session Report | June 29, 2026 | Analysis during European hours (8:00 AM – 5:00 PM CET)

**European Markets Edge Higher Amid Mixed Signals; ECB Policy in Focus** European equities are trading with modest gains in early session activity, though performance remains uneven across major indices. The DAX is leading with a 0.31% rise, supported by strength in industrials, while the CAC 40 is lagging with a 0.14% decline amid profit-taking in luxury stocks. The Euro Stoxx 50 is up 0.20%, reflecting cautious optimism ahead of key Eurozone inflation data later this week. Meanwhile, the FTSE 100 is dipping 0.10% as energy stocks weigh on the index following softer crude prices. In FX markets, the euro is firming against the dollar, with EUR/USD rising 0.14% as traders reassess ECB rate-cut expectations following hawkish commentary from policymakers. GBP/USD is also gaining 0.15%, benefiting from a weaker dollar, while EUR/GBP remains flat at 0.01% as both currencies find balanced demand. The Swiss franc is outperforming, with USD/CHF down 0.16%, as risk-off flows briefly resurface. Overnight, Asian markets closed mixed after weaker-than-expected Chinese PMIs, while US equities ended lower, with the Nasdaq 100 sliding 1.09% on tech sector weakness. This has tempered European risk appetite, particularly in tech and growth-sensitive sectors. Investor sentiment remains fragile as markets weigh conflicting signals—resilient Eurozone growth against persistent inflation concerns. Attention now turns to Thursday’s ECB meeting, where policymakers may push back against aggressive rate-cut bets, and Friday’s US nonfarm payrolls, which could sway Fed expectations. For now, European markets are treading carefully, with sector rotation favoring defensives over cyclics.

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