According to the charts, the Euro Stoxx 50 (Europe 50 on FXOpen) rose above 6,055 points today, marking the highest level in its history.
Positive market sentiment is being driven by expectations that the ECB will cut interest rates in 2026, alongside several other supportive fundamental factors, including:
→ Developments in China. Economic data released today have encouraged optimism about China’s outlook, which is significant for Europe as a major trading partner.
→ Strength in defence stocks amid geopolitical uncertainty. Shares in companies such as Rheinmetall have climbed by around 20% since the beginning of 2026, reflecting increased demand for defensive assets.
A closer look at the Euro Stoxx 50 chart suggests that:
→ price action continues to unfold within an upward-sloping channel, with the index frequently trading in its upper range, highlighting persistent buying pressure;
→ at the start of the week, the index faced resistance near the 6,040 level. Today’s move above this area (indicated by an arrow) may have triggered fresh buying interest, driving prices higher.
It is possible that the breakout to new record levels will establish an additional support area (similar zones are highlighted on the chart), which could help sustain the prevailing uptrend.
That said, some analysts warn that the market appears heavily overbought, keeping the prospect of a corrective move towards the lower edge of the channel firmly on the table.
The future direction of the Euro Stoxx 50 will largely depend on developments in the news flow, which remains difficult to predict. In particular, markets are watching a potential ruling by the US Supreme Court today that could deem Trump’s tariff policy — also relevant to trade with Europe — unlawful.
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