We Just Saw Europe's Biggest Week in Decades

Bullish:

• $EURUSD - Potential for euro strength due to French infrastructure shift, which could boost trend growth, productivity, and ECB rates.

  • “If this big infrastructure shift, the French shift goes ahead, if it's able to push trend growth higher, productivity higher, by extension, ECB rates higher, I think it certainly has potential to be materially positive for the euro.”

    George·15:41
• $DEFENSE - Growth potential in European defense sector due to increased spending and technological development, including drone technology and satellite systems.

  • “We have to think about broader spillovers of defense. For example, just over the last two days, we've we've seen negotiations between Italy and Turkey to develop drone technology. We're seeing a potential shift away from Starlink to European satellite company for Ukraine.”

    George·26:19
• $DAX - Positive sentiment towards the German stock market index (DAX) based on recent strong performance.

  • “Well, I'm gonna say what I'm about to say. You just pull up a chart of the DAX. Oh, yeah. It's pretty”

    Joe·5:15
• $FINANCIALS - European financial stocks showing strong performance, outperforming previous negative expectations.

  • “European financials doing really well too. It's like, you know, everyone was so down on everything Europe, and then Trump was expected to make those lines go down further, and they've just been rocketing up.”

    Joe·4:29