European indices, such as the German DAX 40 and the FTSE 100, have shown positive movement despite ongoing political uncertainty and economic challenges in the Eurozone.
The recent decline in the Eurozone manufacturing PMI indicates significant contractions across various sectors, but the indices have still reached new highs. Investors are weighing the implications of political instability against potential monetary policy adjustments from the ECB.
The ECB is expected to discuss rate cuts in its upcoming meeting, which are seen as crucial for supporting European growth. Technical analysis shows that the FTSE has been consolidating but may resume its uptrend with a break above the trend line resistance. The DAX has shown remarkable strength and could extend its gains towards 20,500.
Market sentiment reflects cautious optimism, with confidence in the German economy and expectations of supportive ECB actions. The interplay between political developments, economic data, and central bank actions will continue to shape the European markets.