The major European indices are ending the day with modest gains/changes. The exception is the UK FTSE 100 which fell -0.41% the day. However for the week, all the indices are down sharply.

The final numbers for the day are showing:

• German DAX, +87.77 points or 0.67% at 13126.27
• France’s CAC, -3.59 points or -0.06% at 582.66
• UK’s FTSE 100 -28.73 points or -0.41% at 7016.26
• Spain’s Ibex +67.8 points or 0.84% at 8145.91
• Italy’s FTSE MIB up 0.43%

For the trading week:

• German DAX, -4.7%
• France’s CAC -4.8%
• UK’s FTSE 100 -4.0%
• Spain’s Ibex -3.0%
• Italy’s FTSE MIB -3.2%

Looking at the German DAX, the price gap lower on Monday (last Friday the price closed at 13761.84), bottomed on Thursday at 13007.91, before modestly rising today. The move up from the June 6 high at 14709.382 the low reached yesterday took the price down -11.57% in a trading days.

Looking at other indices recent moves to the downside:

• France’s CAC fell -10.96% from its June 6 high to the low today
• UK FTSE 100 fell -8.48% from its June 6 high to the low today
• Spain’s Ibex has moved down -10.75% from its May 30 high to the low today
• Italy’s FTSE MIB has fallen -12.96% from its May 30 high to its Wednesday low this week

In comparison to the recent moves lower in the US stock indices:

• NASDAQ index down -14.24% from its June 2 high
• S&P index moved down -12.93% from its June 2 high
• Dow Jones fell -10.81% from its June 2 high.

• Stoxx 600 -1.2%
• German DAX -0.9%
• UK FTSE 100 -0.2%
• French CAC -1.1%
• Spain IBEX -1.5%
• Italy MIB flat

• Stoxx 600 -2.4%
• UK FTSE 100 -1.5%
• German DAX -2.5%
• French CAC -2.6%
• Italy MIB -2.8%
• Spain IBEX -2.4%

It’s been a rough couple days but the DAX still has some breathing room above the May and March lows.

Europe is getting hammered by inflation worries, rate hikes and the potential for a sovereign debt crisis, which is why Italy underperformed today.

• Stoxx 600 -2.7%
• UK FTSE 100 -2.1%
• German DAX -3.1%
• French CAC -2.8%
• Italy MIB -5.0%
• Spain IBEX -3.8%

European stocks had held up much better than US stocks since the March low, in part because of far less tech exposure and lower multiples. But then you get a day like today where Italian stocks cut through support in a 5% fall and it’s a reminder of the risks.

The m Germanyajor European indices are all closing lower on the day. The declines are led by the German DAX which is down -1.7% and Italy’s FTSE MIB which is down by a similar amount. A look at the closing levels shows:

• German DAX, -247.19 points or -1.71% at 14198.81
• France’s CAC -90.17 points or -1.4% at 6358.47
• UK’s FTSE 100 -116.81 points or -1.54% at 7476.20
• Spain’s Ibex, -131.5 points or -1.49% at 8711.21
• Italy’s FTSE MIB -122 points or -1.75% at 23813

In the European debt market, benchmark 10 year yields moved sharply higher with the Italian 10 year rising by 22 basis

points to 3.696%.

Looking at the Italian 10 year yield, it traded to the highest level since November 2018, and is entering a swing area between 3.679% and 3.850%. The 50% midpoint of the move down from the 2012 high yield comes in at 3.891%. Since the low yield in January 2021 near 0.472%, the yield has moved up 324 basis points.

• German DAX, -110.61 points or -0.76% at 14446
• France’s CAC -51.72 points or -0.8% at 6448.84
• UK’s FTSE 100 -5.93 points or -0.08% at 7593.01
• Spain’s Ibex unchanged at 8842.71
• Italy’s FTSE MIB -133 points or -0.55% at 24233

Looking around other markets as London/European traders look to exit shows:

• Spot gold is trading up $5.68 or 0.31% at $1857.60.
• Spot silver is down 5.5 cents or -0.25% at $22.19
• WTI crude oil futures are higher despite a surprise build at the weekly inventory data. Crude oil is trading at $21.50. That’s up $2.10 on the day
• Natural gas traded to a new cycle high at $9.65 today. It is currently trading at $9.58 up $0.25 or 2.68%. That is still not good news for inflation
• The price bitcoin trades at $30,473 – near the middle of the days trading range. The low for the day came in at $29,831 while the high for the day was at $31,310.

• German DAX, -25.10 points or -0.17% at 14460.08
• France’s CAC -15.14 points or -0.23% at 6485.31
• Spain’s Ibex -19.3 points or -0.22% at 8724.81
• Italy’s FTSE MIB -259.84 points or -1.06% at 24166

Looking at the German DAX, the decline today came after an earlier session rises to the price up to 14589.91. That took the price briefly above the high from a Monday at 14589.45, but momentum quickly faded and the price started to move back to the downside. By the close, the pair had moved back below its falling 100 day moving average at 14473.18. The price this week moved above the 100 day moving average on Monday (it closed above on that day), on Tuesday (a close below the moving average) and again today with a failure at the close.

Both the UK and Italy are closed today but the German, France and Spain markets were open. Spain is closing near unchanged on the day , but Germany and France equity markets are closing with solid gains.

• German DAX, +1.05%
• France’s CAC, +1.27%
• Spain’s Ibex, +0.3%

Looking at the German DAX, the high for the day reached 14492.78. That was just above the 100 day moving average at 14488.69. However the closing level at 14485.18 is just below that level. The last 4 days has seen at 100 day moving average tested. It would take a move above with momentum, to increase the bullish bias. Key level for both buyers and sellers.

The good news (for buyers) is that the index price is back above its 50% midpoint of the move down from the January 2022 high. That midpoint level comes in at 14363.27. Yesterday the price close below that level but rebounded back higher today.

• German DAX futures +0.4%
• UK FTSE futures +0.2%

Risk sentiment is keeping steadier as we get into European morning trade, after a bit of a sluggish showing by equities yesterday. The recent bounce in stocks may have some added breathing room but the storm clouds are still staying the course. Elsewhere, S&P 500 futures are up 0.2%, Nasdaq futures flat, and Dow futures up 0.4% currently.