Opening
European equities posted a split session on Thursday, with the CAC 40 leading continental gains at +0.88% to close at 8,222.5, while London's FTSE 100 shed 0.48% to 10,282.7 and Amsterdam's AEX declined 0.63% to 1,037.4. The euro's continued strengthening against the dollar — EUR/USD at 1.1632, up 0.26% — is the session's defining development, as sustained appreciation erodes export competitiveness for eurozone manufacturers and compresses the translated earnings of multinationals reporting in euros. For European investors with dollar-denominated holdings, the currency move represents an accelerating headwind that warrants close attention as the pair tests levels not seen in recent months.
Brent crude slipped 1.18% to $96.66, offering modest relief to energy-intensive European industrials, while gold's 0.67% advance to $4,497 signals persistent risk-off positioning ahead of the ECB's June 11 meeting, where markets are pricing a 90% probability of a further 25 basis point hike to 2.25% — a trajectory that continues to weigh on rate-sensitive sectors including real estate and utilities across the Stoxx 600.
Key stock move
ASML fell 2.0% to €1,456.20, the sharpest decline among AEX constituents, as the semiconductor equipment maker continued to face pressure from export restriction concerns weighing on the broader chip sector.
What to watch today
ECB policymakers gather ahead of the June 11 rate decision, with markets pricing a 25 basis point cut but scrutinising any guidance on the pace of subsequent easing given persistent services inflation across the eurozone.
Brent crude holding at 96.66 dollars a barrel keeps energy cost pressures in focus for European industrials and utilities reporting this week, with any move toward the 100-dollar threshold likely to revive inflation expectations and complicate the ECB's signalling.
EUR/USD at 1.1632 sits near its strongest levels of the year, a headwind for exporters in the DAX and CAC 40 that derives meaningful revenue in dollars, making currency commentary in any corporate updates a key point of attention today.