European indices faced a tough session on Tuesday, with the DAX falling 1.8% and the CAC 40 down by 1.2%. The declines came despite a slight recovery in late U.S. trading, where the S&P 500 closed at a record high. However, as U.S. futures struggle in early trading today, risk appetite is subdued ahead of the European market open.
U.S. Futures Struggling, Dampening Market Sentiment
S&P 500 futures are currently down by 0.3%, pointing to a weaker start in U.S. markets. This is contributing to a cautious mood in European trading, as investors remain wary of geopolitical tensions and economic uncertainties. Notably, ongoing concerns over President Trump’s tariffs and the geopolitical situation involving Trump, Russia, and Ukraine continue to weigh heavily on market sentiment.
Focus on Geopolitical Risks
Geopolitical developments, particularly those concerning U.S.-Russia-Ukraine relations, remain a key point of concern for traders. These factors are contributing to the uncertainty, impacting risk appetite as markets navigate through these complex issues.
Outlook for European Markets
As the European session progresses, investors will be closely monitoring any further shifts in global risk sentiment, with U.S. futures and geopolitical developments likely to play a significant role in shaping market movements. The Eurostoxx futures are currently up 0.1%, but the outlook remains cautious as the broader market sentiment continues to be influenced by external risks.
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