- European equities declined on Tuesday amidst a thin economic calendar.
- UK BRC Retail Sales fell further, fueling risk-off investor sentiment.
- European Unemployment Rate ticks down to 6.4%.
European equity indexes declined on Tuesday, paring back some losses at the midpoint of the day’s trading sessions but still ending the day broadly lower as market sentiment coils with investors awaiting meaningful data.
The Eurozone’s Unemployment Rate ticked slightly lower from 6.5% to 6.4% in November, but the overall employment picture in Europe sees businesses struggling to fill positions and a general mismatch in labor skills plaguing productivity across the continent.
Tuesday also saw the UK’s BRC Like-For-Like Retail Sales for the year ended December, which declined from 2.6% to 1.9% compared to the previous month’s YoY result as UK consumers grapple with still-high inflation eating away at their spending power.
ECB's Villeroy: ECB to cut rates in 2024
Banque de France (BoF) Governor and member of the European Central Bank’s (ECB) Governing Council François Villeroy de Galhau delivered hawkish remarks after the market close to investors, noting that the ECB is well on its way to begin cutting rates in 2024. European shareholders will have to wait until Wednesday’s market open to bid on stocks following Villeroy’s statements.
The German DAX fell 0.17%, sliding 28 points to close at €16,688.36, while France’s CAC 40 Index shed a third of a percent to close at €7,426.62, down 23.62 points. The UK’s FTSE 100 index shed a little over one-tenth of one percent, falling 10.23 points to £7,683.96.
The pan-European STOXX600 index fell 0.92 points to close at €477.26, down a fifth of a percent on Tuesday.
DAX Technical Outlook
The DAX fumbled on Tuesday, paring back Monday’s gains to fall into the €16,6090 neighborhood before moderating in the last half of the trading day.
The German equity index is still down from 2024’s opening bids, and intraday action is getting snarled on the 200-hour Simple Moving Average (SMA).
The Dax snapped a three-day win streak on Tuesday, keeping the index trapped inside a congestion pattern just below December’s recent highs just shy of the €17,000 major handle.
DAX Hourly Chart
DAX Daily Chart
DAX Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD faces strong resistance around 0.6800
![AUD/USD faces strong resistance around 0.6800](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/AUDUSD/hundred-bucks-3645622_XtraSmall.jpg)
Further weakness saw AUD/USD retreat further and add to Monday’s decline in response to the slight advance in the US Dollar and declining prices in the commodity space.
EUR/USD: Sellers lack conviction so far
![EUR/USD: Sellers lack conviction so far](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/world-currencies-53600634_XtraSmall.jpg)
EUR/USD revisited the sub-1.0900 region before regaining balance and close Tuesday’s session with marginal gains amidst some loss of momentum in the Greenback and rising bets of an interest rate cut by the Fed in September.
Gold reaches fresh record highs above $2,460
![Gold reaches fresh record highs above $2,460](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/stack-of-golden-bars-in-the-bank-vault-60756080_XtraSmall.jpg)
Following a short-lasting correction in the early American session, Gold gathers bullish momentum and trades a new all-time high above $2,450. The benchmark 10-year US Treasury bond yield stays in the red near 4.2%, fuelling XAU/USD's rally.
Meme coins rally amidst Ethereum ETF approval hype, PEPE extends gains by 10%
![Meme coins rally amidst Ethereum ETF approval hype, PEPE extends gains by 10%](https://editorial.fxstreet.com/images/Markets/Currencies/Cryptocurrencies/PEPE/PEPE_coin_2_XtraSmall.jpg)
PEPE, a meme coin built on Ethereum, and based on a popular frog-themed meme has rallied in double digits on Tuesday. As crypto market participants await the Securities & Exchange Commission’s approval of a Spot Ethereum ETF, meme coins have started recovering from their decline in the first week of July.
Despite upside surprise, Retail Sales show lost momentum
![Despite upside surprise, Retail Sales show lost momentum](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/ConsumerSpending/RetailSales/store-sale-window-display-gm174321229-25751491_XtraSmall.jpg)
Despite lower sales at autos dealers and at gas stations, retail spending held steady in June. Excluding those categories, it was the best month since January 2023, and that means upside risk for Q2 consumer spending.