DAX 40 Record Close as Euro Stocks Rally, EUR/USD Slips Back to 1.13
European stocks close broadly higher with Dax near record highs, while EUR/USD struggled amid uncertainty and euro pullback.
Quick overview
- European equity markets closed mostly higher, with Germany's DAX 40 leading the gains due to strong performances in industrials and financials.
- In contrast, major U.S. indices faced declines, primarily driven by weakness in the technology and energy sectors, with notable drops in stocks like Apple and Nvidia.
- The EUR/USD currency pair retreated to 1.13 as the euro lost momentum after a strong rally earlier in the year, amid concerns over U.S. economic conditions.
- Overall, the session highlighted a divergence in market sentiment between Europe and the U.S., with European stocks showing resilience while U.S. markets struggled.
Live DAX Chart
European stocks close broadly higher with Dax near record highs, while EUR/USD struggled amid uncertainty and euro pullback.
European Markets Push Higher, Led by Germany
European equity markets ended the day mostly in positive territory, with Germany’s DAX 40 leading the charge. Strong performances across industrials and select financial stocks helped propel the DAX to the top of the leaderboard. Sentiment remained cautiously optimistic despite lingering concerns around global growth and trade disruptions. Spain’s IBEX, the UK’s FTSE 100, and Italy’s FTSE MIB also posted gains, reflecting a generally upbeat tone across the continent.
U.S. Markets Face Headwinds as Tech Sector Stumbles
In contrast, major U.S. indices traded lower, dragged down by pronounced weakness in the technology and energy sectors. According to today’s market heatmap, consumer electronics and semiconductor stocks were hit hardest, with industry giants like Apple (AAPL) and Nvidia (NVDA) leading the decline. Selling pressure intensified amid concerns over inflated valuations and ongoing geopolitical uncertainty.
However, not all tech names followed suit—AMD managed to buck the trend with a near 2% gain, standing out as one of the few bright spots amid widespread red in the tech-heavy Nasdaq.
EUR/USD Retreats to 1.13 Again as Dollar Regains Ground
The foreign exchange landscape also saw some significant moves. After a steady rally throughout much of 2025—even in the face of the European Central Bank’s dovish rate cut—the euro finally lost steam. EUR/USD had climbed as high as 1.1570 in April, supported by expectations of U.S. economic softening linked to trade tensions.
But that rally faded swiftly. Over the past week, the euro has dropped sharply by over 2.5 cents, falling back toward the 1.13 handle. After a brief overnight rebound to the 1.1360s, the pair has once again retreated to 1.13, suggesting that bearish momentum may be building.
European Equity Markets – Closing Snapshot
German DAX 40
- Closed at 23,344.54, gaining +257.89 points (+1.12%), buoyed by strong earnings in the industrial and manufacturing sectors, along with improved investor sentiment across the Eurozone.
France CAC 40
- Finished at 7,727.93, slipping −42.55 points (−0.55%), weighed down by weakness in luxury goods and financials amid cautious outlooks on Q2 revenue growth.
UK FTSE 100
- Closed at 8,596.35, rising +99.55 points (+1.17%), driven by strength in energy and mining stocks, with commodity prices rebounding and investor appetite growing ahead of the Bank of England policy meeting.
Spain IBEX 35
- Ended the session at 13,518.00, up +71.30 points (+0.53%), with banks and telecoms contributing most of the gains.
Italy FTSE MIB Total Return Index
- Settled at 38,475.55, climbing +147.61 points (+0.39%), helped by continued buying in utilities and industrials, supported by improving Eurozone PMI data.
European markets finished mostly higher on the day, with the UK and Germany leading gains, reflecting optimism around regional growth and earnings resilience. While the French market lagged due to sector-specific headwinds, broader sentiment remained constructive. A mix of earnings momentum, central bank outlooks, and global macro developments will shape the tone heading into the after hours of the US trading session, when Palantir, Ford etc.
Conclusion
Today’s session reflects a growing divergence in market sentiment between Europe and the U.S. While European stocks found strength in selective sectors, ending Dax to close near record levels, Wall Street struggled under the weight of tech selling and broader macro concerns. Meanwhile, the euro’s recent rally appears to be losing momentum, setting up a potential trend reversal if dollar strength persists. All eyes now turn to upcoming central bank guidance and key economic data for clarity on where global risk appetite heads next.
German Index DAX 40 Live Chart
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