StocksTechnical Analysis

European Stocks Under Pressure

Stock markets are experiencing a brief cooling of investor sentiment on Monday amid continued geopolitical risks centered on tariffs. Germany’s DAX is currently down 0.58%, while France’s CAC40 is down 0.54% and the UK’s FTSE 100 is adding 0.1%. The DE40 contract is down, although it is still hovering near its all-time high (ATH), maintaining a strong uptrend. In terms of stocks, Hensoldt is the standout today, adding over 12%.

The German stock market has outperformed most of its global peers this year, breaking a record last week. Now, improving earnings estimates could reinforce its outperformance over the rest of Europe. Source: Bloomberg Financial LP

Volatility is currently being seen in the broader European market. Source: xStation

The German DE40 index is down slightly today, although the contract is still in a relatively stable uptrend as indicated by its exponential moving averages. The most important support point in the near term remains the 50-day EMA (blue line on the chart). As long as it is not broken, the uptrend seems to be unwavering. The 14-day RSI indicator is falling below the 70-point mark, which from a technical point of view indicates a cooling of investor sentiment after the contract was bought out. Source: xStation

Market news

Hensoldt (HAG.DE) shares are gaining almost 11.63% during today’s session after JP Morgan more than doubled its target price for the company’s shares to EUR 110 after the analyst emphasized Hensoldt AG’s solid prospects for the next five years, predicting exceptionally strong results. Hensoldt’s recent guidance published on May 7 predicts an organic compound annual growth rate (CAGR) of sales of at least 15% through 2030. The revised price target is based on applying significantly higher target multiples to Hensoldt AG estimates.

The stock is trading at new all-time highs. Source: xStation

German blue-chip stocks are set to lead European earnings per share growth in the second half of 2025 and into 2026, according to Bloomberg data, with more than 50% of the consensus 13-15% DAX rebound driven by companies focused on defense, energy transition, artificial intelligence and electric vehicles. A 1.6% GDP boost from fiscal stimulus could boost earnings per share by 6% in 2026, while direct tariff hits in the U.S. appear more limited than expected due to local manufacturing.

Source: Bloomberg Financial LP

More news from individual DAX companies. Source: Bloomberg Financial LP

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