DAX 40 Index Pulls Back Slightly, Still Eyes Record Highs – FTSE, IBEX Advance

Due to diverse national market patterns and cautious investor attitude, Dax 40 index and European stock markets closed the day...

DAX Pauses Ahead of New Highs, FTSE and IBEX Rise DAX Pauses Ahead of New Highs, FTSE and IBEX Rise

Quick overview

  • European stock markets closed mixed, with Germany's DAX 40 leading the decline due to cautious investor sentiment.
  • Concerns over global trade policies and tariff uncertainties weakened the U.S. dollar, impacting risk assets.
  • While the DAX and Italy's FTSE MIB fell, the UK's FTSE 100 and Spain's IBEX 35 posted modest gains, driven by domestic-focused sectors.
  • The mixed performance reflects a balance between optimism over falling inflation and uncertainty regarding economic growth and geopolitical risks.

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Due to diverse national market patterns and cautious investor attitude, European stock markets closed the trading day with uneven performances, with the DAX 40 leading the fall.

European Markets Mixed as Dollar Falters on Trade Uncertainty

Investor sentiment turned cautious once again as confusion surrounding global tariff policies and trade negotiations weighed on the U.S. dollar. A lack of clarity from policymakers and conflicting signals from the White House have left markets on edge, weakening the greenback and leading to tentative positioning across risk assets.

European stock markets responded with a fragmented close. The German DAX 40 led the declines, followed by Italy’s FTSE MIB, both pulled down by export-heavy and industrial sectors that are especially sensitive to trade disruptions. Concerns over future tariffs, coupled with fragile global supply chains, continue to sap confidence in these economies.

German Index DAX 40 Chart Daily – Buyers Not Letting GoChart GER30M, D1, 2025.06.02 16:58 UTC, MetaQuotes Ltd., MetaTrader 5, Demo

In contrast, the UK’s FTSE 100 and Spain’s IBEX 35 managed to notch modest gains. Investors appear to be favoring more domestically-oriented or defensive markets during this period of uncertainty. The FTSE was helped by strength in commodity-linked shares and a softer pound, while Spain’s IBEX benefited from resilient banking stocks and investor demand for southern European equities.

Meanwhile, U.S. futures found modest support from the broader risk-off tone in Europe, as investors seek clarity on both fiscal direction and trade commitments. With no definitive resolutions in sight, volatility may persist in the days ahead as traders digest shifting narratives from Washington and Beijing.

European Major Stock Indices – Daily Close Overview

Germany’s DAX (Performance Index
  • Closed at 23,930.67, declining −66.81 points (-0.28%).
    The index was weighed down by weakness in industrial and auto sectors, amid persistent concerns about economic growth and soft export data.
France’s CAC 40
  • Ended the session at 7,737.20, down −14.69 points (-0.19%).
    Pressure came from energy and consumer goods sectors, though banking stocks remained relatively stable.
UK’s FTSE 100
  • Closed modestly higher at 8,774.26, rising +1.88 points (+0.021%).
    Gains were led by utilities and oil majors, while defensive names helped cushion broader volatility. The index remains near record highs.
Spain’s IBEX 35
  • Finished at 14,202.80, increasing +50.60 points (+0.36%).
    The Spanish index was among the best performers in Europe, supported by bank-led gains and solid demand for domestic equities.
Italy’s FTSE MIB (Total Return Index)
  • Declined to 39,984.15, falling −103.25 points (-0.26%).
    Losses were driven by weakness in industrials and tech, despite resilience in Italian financials.

Conclusion: European equities wrapped up the session with a mixed tone. Southern European markets like Spain outperformed, buoyed by local optimism and sector-specific gains, while core markets like Germany and France slipped modestly on weaker-than-expected macro signals. The divergence underscores how investors are balancing optimism over falling inflation with uncertainty around growth trajectories, central bank decisions, and geopolitical risks.

German Dax 40 Index

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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