European Session Report | February 04, 2026 | 08:00–17:00 UTC

### European Market Commentary: Session Open

As the European trading session gets underway, markets are showing a mixed start following a subdued close on Wall Street, where the S&P 500 fell 0.84%, the Dow Jones dropped 0.34%, and the Nasdaq 100 declined 1.55%. Investors are digesting concerns over artificial intelligence’s potential disruption to software and analytics sectors, which weighed on US tech-heavy indices overnight. Asian markets offered little direction, with modest gains in Japan overshadowed by broader caution amid geopolitical tensions, including reports of Russian spacecraft intercepting key European satellites—a development that could heighten defense spending expectations across the region.

European indices are reflecting this tentative mood. The Euro Stoxx 50 is edging higher by 0.10%, supported by gains in financials and healthcare, while the DAX is slipping 0.50% as industrial and automotive sectors face pressure from supply chain worries tied to orbital security issues. The CAC 40 is nudging up 0.11%, buoyed by luxury goods resilience, and the FTSE 100 is advancing 0.97%, driven by banking and insurance strength amid takeover activity. Sector-wise, defense stocks like Rheinmetall are rallying on expansion news into space technologies, unsettling rivals and underscoring a shift from arms to orbital investments. Meanwhile, insurance and wealth management are in focus, with UBS reporting profit growth from Credit Suisse integration cost savings and Zurich pursuing an £8bn acquisition of UK insurer Beazley, signaling consolidation to bolster diversification—a theme echoed by M&G’s CEO emphasizing portfolio balance.

In FX, the euro is weakening slightly against the dollar, with EUR/USD dipping 0.01%, as Eurozone inflation cools to its lowest in over a year, fueling bets on ECB rate cuts despite sticky services prices. GBP/USD is gaining 0.07%, reflecting UK resilience, while EUR/GBP falls 0.08%, highlighting sterling’s relative strength. The Swiss franc is firming versus the dollar, USD/CHF up 0.06%, as safe-haven flows persist amid global uncertainties. Broader pairs like USD/JPY rising 0.57% point to yen weakness influencing European carry trades.

Key European drivers include ECB policy signals and Eurozone data. Today’s January euro area bank lending survey will provide insights into credit conditions, potentially influencing monetary easing expectations. Political developments, including Novo Nordisk’s outlook on volumes offsetting price cuts in obesity drugs, add to pharma optimism. Overall sentiment remains cautious.

Index	Price	Daily (%)
Euro Stoxx 50	5995.25	+0.10
DAX	24721.53	-0.50
CAC 40	8228.99	+0.11
FTSE 100	10414.78	+0.97

Index	Price	Daily (%)
S&P 500	6917.81	-0.84
Dow Jones	49240.99	-0.34
Nasdaq 100	25338.62	-1.55

Pair	Price	Daily (%)
EUR/USD	1.18	-0.01
GBP/USD	1.37	+0.07
USD/JPY	156.68	+0.57
EUR/GBP	0.86	-0.08
USD/CHF	0.78	+0.06
AUD/USD	0.70	-0.03
USD/CAD	1.37	+0.10

Commodity	Price	Daily (%)
Gold	5078.80	+3.57
Silver	89.26	+7.49
Crude Oil (WTI)	63.68	+0.74
Brent Oil	67.72	+0.58
Natural Gas	3.30	-0.30

Crypto	Price	Daily (%)
Bitcoin	76093.14	+0.61
Ethereum	2255.99	+1.28

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