The DAX has recovered from Wednesday's sharp sell-off, benefiting from a rebound in semiconductor stocks and a modest pullback in oil prices. According to Investing.com India, this recovery comes despite ongoing concerns over shipping through the Strait of Hormuz, which continue to weigh on sentiment. President Trump's declaration at the NATO summit that the Iran ceasefire was effectively over raised fears of renewed conflict, but markets have remained relatively resilient as investors view the latest escalation as another setback rather than the beginning of a prolonged conflict. The improvement in sentiment has also been supported by reports that China could allow domestic AI firms to access Nvidia's H200 chips, helping revive the AI trade after recent profit-taking.
German factory orders surprised to the upside, rising 1.9% month-on-month in May after a 3.2% decline in April, comfortably beating expectations for a 1.2% increase. As reported by Investing.com India, this data suggests that manufacturing demand may be beginning to stabilise after a prolonged period of weakness. The DAX is well positioned in this current environment given its heavy weighting towards industrials, manufacturers, and financials, which all tend to benefit if global growth stabilises and borrowing costs remain contained.
The FTSE 100 has opened modestly higher, broadly tracking gains across European markets after the index recorded a second consecutive weekly advance and closed Friday at its highest level since early March. According to Investing.com India, the FTSE 250 is outperforming after EasyJet (LON:EZJ) accepted a takeover offer from Castlelake, ending months of speculation surrounding the airline. The bid, the fifth made by the U.S. investment firm, follows a sharp decline in EasyJet's share price earlier this year as higher fuel costs during the Middle East conflict and softer travel demand weighed on sentiment.
In another significant development, ITV has agreed to sell its media and entertainment business to Sky for £1.6 billion. As reported by Investing.com India, the deal would create a larger UK-focused streaming and media platform capable of competing more effectively with global rivals such as Netflix, YouTube and Prime Video. For Sky owner Comcast, the acquisition would significantly expand its audience reach while strengthening its position in the UK advertising market at a time when traditional broadcasters continue to face structural challenges.
The DAX has rallied from the 2026 low of 21,860 to a record high of 25,920 before pulling back sharply towards 25,000, currently testing support at its rising trendline and the 23.6% Fibonacci retracement of the rally from the 2026 low. According to Investing.com India, while the price remains above this support zone, the broader uptrend remains intact with buyers looking for a recovery towards 25,500 before targeting the record high around 25,920. On the downside, a break below 25,000 would expose the 50-day SMA near 24,750, below which attention would turn to the 38.2% Fibonacci retracement around 24,360. The FTSE 100 has broken above its symmetrical triangle pattern, extending gains to a three-month high around 10,700, with momentum remaining constructive as the RSI holds above 50.
