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• European stock markets showed mixed performance, with Germany’s DAX 40 slightly falling from its all-time high.
• Investors exercised caution, awaiting updates on US debt ceiling negotiations between President Joe Biden and House Speaker Kevin McCarthy.
• Treasury Secretary Janet Yellen warned about the potential default on US debt by June 1 if a debt ceiling agreement is not reached.
• The market focus shifted to upcoming data releases, including Eurozone construction output and consumer confidence figures.
• Shares of Adidas fell over 3% following a profit warning from its US peer, Foot Locker.
• Henkel's CEO expressed the company’s interest in acquisitions, signaling their active pursuit of growth opportunities.
• The euro consolidated gains above $1.08, recovering from a seven-week low, driven by contrasting views on rate hikes between the ECB and the US Federal Reserve.
• ECB board member Isabel Schnabel advocated for continued efforts to tame inflation, while ECB President Christine Lagarde assured necessary measures would be taken.
• Fed Chair Jerome Powell favored a gradual approach to rate hikes, highlighting a divergence in views with the ECB.

The Euro STOXX 600 is currently trading in a rotational pattern within the prior value close area. Market participants appear to be relying on the value extremes to determine potential upside scenarios. However, median-term calculations suggest the possibility of upcoming selling pressure. From a technical standpoint, the market remains imbalanced on the bullish side, trading above significant VWAP value periodicities.

The resolution of the US debt ceiling issues could have a positive impact on investor sentiment, seemingly shifting focus away from concerns about banking and recession fears associated with elevated interest rates. Investors are eagerly awaiting any hints of progress in these discussions, as it could greatly influence market dynamics and lift the overall market mood.

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