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• European Shares Extend Losses: European shares decline for the fifth consecutive session, on track for their worst week since March, as investors grapple with the impact of central banks’ monetary tightening measures and disappointing economic data.
• Bank of England’s Aggressive Rate Hike: The Bank of England’s larger-than-expected 50-basis point rate hike, coupled with its commitment to continued policy tightening, raises concerns among investors about the economic consequences of curbing inflation.
• Eurozone PMI Data Disappoints: The latest PMI survey indicates a near-stagnation of business growth in the Eurozone, attributed to a slowdown in service activity and a contraction in manufacturing.
• Siemens Energy’s Outlook Withdrawal: Shares of Siemens Energy plummet as the company withdraws its annual profit outlook, adding to the negative sentiment in the market.
• German DAX Hits Three-Week Low: Germany’s DAX index falls 0.7% to a three-week low, reflecting the overall bearish sentiment in European markets.
• Euro Slumps on Interest Rate Concerns: The euro declines by 0.8% against the dollar, dropping below $1.09, driven by worries about the potential economic impact of higher interest rates in the Eurozone.
• PMI Data Signals Slowdown: German private sector growth slows sharply in June, while French business activity contracts for the first time in five months, further dampening market sentiment.
• Expectations of ECB Rate Hikes: It is anticipated that the European Central Bank will raise interest rates at least twice this year, considering persistently high inflation levels compared to their 2% target.

The Europe STOXX 600 trades steady during the European session, displaying a mixed market sentiment as it initially opened lower but later gained traction. The market commenced trading within the previous VWAP value close area and appeared to gravitate towards the upper value extreme, potentially attracting sellers for a potential downside rotation during the New York trading session. However, the prior VWAP close level continues to offer support for buyers and the swing highs might be targeted.

The strength of the dollar remains a potential source of pressure for both the US and European equities sectors. From a median-term perspective, the market may find support from a weaker dollar and some mildly bullish patterns, creating opportunities for absorption and the establishment of core long positions. This comes after the market experienced a consecutive four-day decline.

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