Monthly Updates
In June, global equity markets saw a relatively positive trend with optimism from the U.S. debt ceiling deal, easing inflation data and the subsequent tailwind from Wall Street stocks; European equities market rallied, with the DAX Index up 3.09% to 16,147.90 points, the EURO STOXX 50 Index up 4.29% to 4,399.09 points, and the SMI Index up 0.56% to 11,280.29 points
Germany’s DAX Index and the EURO STOXX 50 Index benefitted from the European automobile sector gains, as seen in a 19.1% jump in the STOXX Global 1800 Automobiles & Parts Index in June; in specific, automobile is the DAX Index’s second-largest sector allocation. The EURO STOXX 50 Index was also driven by valuation; it was significantly undervalued with a P/E ratio of 13.99 as compared to S&P 500 with a P/E ratio of 22.2, suggesting potential upsides to investors
On June 1, the DAX and EURO STOXX 50 Index gained 1.10% and 0.90% respectively as the U.S. House of Representatives passed the bill to suspend its $31.4 trillion debt ceiling the previous evening. Simultaneously, encouraging inflation data boosted investor sentiments as they anticipate that the Federal Reserve will pause its rate hikes
On June 14, European equities rallied with EURO STOXX 50 Index closing at 4376 points, inching closer to its annual high of 4,412 points with positive data from Germany and the UK, and tailwinds from Wall Street; Eurozone industrial production growth data beat consensus and expectations on a Fed fund rate pause increased after May data showed moderation in the U.S. consumer price inflation; Trading activity in the Eurex Micro Product Suite rose at its highest level in the month by 56% from the previous trading day and reached a monthly high volume of nearly 33k contracts
Subsequently, European stocks closed broadly lower the next day (June 15) after ECB raised its key interest rates by 25 bps to a 22-year high; as ECB increased inflation projections through 2025, one last hike in July was signaled; trading volume in the Eurex Micro Product Suite plunged by 37% from the previous trading day to 20.6k contracts
On June 16, a turn in sentiments were observed as investors gained visibility on the interest rate policy of central banks despite hawkish postures; slight subordinate interest rate cuts in China also generated expectations for a key interest rate reduction in response to the country’s economic slowdown
At the current half-year mark, overall European equities performance has been impressive, with DAX Index and EURO STOXX 50 Index up around 15% relative to the beginning of the year
Overall, with over 456k contracts traded in June, the Eurex Micro Product Suite remains an avenue for investors to take an opinion on the European markets as order book spread and depth remain attractive throughout the day, ensuring investors can continue to capture opportunities across all time zones.
This publication is published for information purposes only and shall not constitute investment advice respectively does not constitute an offer, solicitation or recommendation to acquire or dispose of any investment or to engage in any other transaction. This publication is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this publication are for illustrative purposes only.
For further information about Eurex Micro Product Suite, please visit our website at www.eurex.com/micro.
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