IBEX 35 Leads European Gains, DAX Enters Price Discovery ModeDAX Cash IndexACTIVTRADES:GER40ActivTradesIBEX 35 lider of european bullish advances in the tariff agreements By Ion Jauregui – Analyst at ActivTrades European markets kick off the day with strong gains, driven by renewed optimism over trade negotiations between the United States and China. In this context, IBEX 35 futures surge by 1.52% to 14,273 points, positioning the index as one of the top performers in Europe. Meanwhile, Germany’s DAX 40 also rises 1.34% to 24,635 points. News of potential tariff agreements, combined with growing expectations of a more accommodative stance from the European Central Bank (ECB), are pushing major European indices higher. The French CAC 40 climbs 1.56%, while the EuroStoxx 50 gains 1.33%, reflecting renewed risk appetite across the board. Global Context: Asian Rebound and Moderate Commodities Euphoria The upbeat tone isn’t limited to Europe. In Asia, major indices closed in the green, and the Australian dollar hit an eight-month high, reflecting investor optimism around global trade and corporate earnings. Oil prices are also rising, supported by a larger-than-expected drop in U.S. crude inventories and expectations of stronger global demand. All Eyes on the ECB Today’s highlight is the ECB meeting, where a decision on interest rates will be announced. While no major surprises are expected, investors will be watching closely for clues on the timing of future rate cuts—especially in light of recent inflation and activity data. Additional key data scheduled for release today: Unemployment and PPI in Spain Composite PMIs for Germany, France, the Eurozone, and the U.S. U.S. housing data and jobless claims Corporate Outlook: IBEX Boosted by Strong Earnings Several IBEX 35 companies are in the spotlight due to positive developments: Banco Sabadell targets a 16% return on equity by 2027, supported by a €6.3 billion shareholder payout plan. Indra nearly doubles profits, fueled by operational gains and revaluation of its stake in TESS. ACS acquires Segade to strengthen its position in the data center sector. Telefónica is in talks with AXA to join its fiber joint venture with Vodafone. Santander makes a €1 billion bid for Mercedes’ leasing division. Technical Analysis – IBEX 35: Key Zone at 14,300 Points The IBEX 35 shows a clear structure of higher lows since the beginning of the month. Breaking above the 14,200-point level, an intermediate resistance, reinforces its short-term bullish outlook. The index is now approaching the 14,300–14,350 zone, which has acted as a ceiling since May. This is a pivotal area; a failure to break through could form a triple top pattern, potentially triggering a correction toward support at 13,698 or even lower toward the control area near 13,491. A consolidation above 14,350, however, could set the stage for a new upward leg toward 14,500 points, provided the ECB maintains a dovish tone. Momentum indicators support the move, although they are nearing overbought levels. RSI stands at 57.89%, while the MACD remains positive and climbing above the histogram. Technical Analysis – DAX 40: Eyeing a Break Above 24,700 The DAX 40 is also benefiting from global bullish momentum. After consolidating above 24,300, a breakout above the 24,650 resistance could trigger a move toward the 24,700–24,800 zone, pushing the index beyond its all-time highs recorded in June. A daily close above 24,800 would place the German index firmly in price discovery mode, with the next psychological target at 25,000 points. The RSI remains strong at 58.84%, with no immediate signs of exhaustion, while the MACD confirms the bullish signal from last week, expanding well above the histogram—though momentum appears moderate. Conclusion Progress in trade negotiations and expectations of a dovish ECB are setting the stage for a bullish session in European markets. The IBEX 35 leads the rally, supported by strong corporate results and technical strength, while the DAX 40 continues its upward trend, with potential for new all-time highs. Today’s ECB decision could be a turning point if it confirms the accommodative stance the market is anticipating. ******************************************************************************************* The information provided does not constitute investment research. 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