The European stock markets are reacting positively to the slight easing in the manufacturing sector. After a three-month downturn in the purchasing managers' index, confidence in better capacity utilisation seems to be returning in companies and the index climbed significantly for the first time in three months. Only in February and May in 2024 was the confidence of purchasing managers greater.
The European stock markets such as EuroStoxx or DAX are reacting with price premiums, but it will not only be the manufacturing index that is associated with this upswing, it can only be a leading indicator. Because if the other important indications in the area of sales and on the labor market do not follow suit, this could also be a complete failure. The process of emerging from the recession in the manufacturing sector will therefore continue for a while, but the clouds on the horizon are clearing noticeably.
Deutsche Telekom continues upward trend - Schneider Electric under pressure
The daily winner in the Euro Stoxx 50 was Deutsche Telekom with a gain of 3.2 percent, ahead of the share of Amadeus IT with a price increase of 3.1 percent and the shares of the company Inditex with a premium of 3 percent. At the lower end of the 50 EU stocks was the share of Schneider Electric, which suffered significant losses with a loss of 7.5 percent.
Euro with signs of stabilisation
To ensure that the European stock markets do not lose momentum, the ECB is interlinked, which can support the economy in unison by controlling the interest burden. The ECB's mandate to ensure stable prices and a stable labour market can play a decisive role in this. This could put further pressure on the euro due to the strong pressure of the US dollar and drive it towards parity, but on the other hand, Donald Trump is trying to influence the Fed, so that the strength of the dollar may be curbed somewhat. The euro has already lost more than 3 percent against the dollar over the year, but has been able to gain some ground again in recent weeks, so that the European common currency is currently heading for 1.05 US dollars.
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