European stock indices mixed

David Morrison

SENIOR MARKET ANALYST

06 Jun 2025

Share this article on social

European stock indices were mixed in early trade, but with a slightly negative bias on Friday. Investors appear to be catching their breath after a busy week, which included a rate cut yesterday from the European Central Bank (ECB). Traders seem happy to sit on their hands ahead of today’s US Non-Farm Payroll release. 

Related News

News and insights article poster image

NEWS AND INSIGHTS

US markets surge as Trump hints at tariff breaks

US crude oil candlestick chart showing prices rise from a support level

NEWS AND INSIGHTS

Crude oil rises as US tariffs and OPEC+ cuts boost prices

News and insights article poster image

NEWS AND INSIGHTS

Markets steady as data weakness raises questions

US stock indices drop on Tesla sell-off

US stock indices were lower across the board by Thursday’s close, in a session marked by choppy price action and headline-driven swings. The S&P 500 lost 0.5%, while the Dow fell 0.3%. 

The NASDAQ was hit the hardest, closing down 0.8%, largely due to a 14% plunge in Tesla shares. This followed a very public spat between President Trump and Elon Musk. The fallout weighed heavily on sentiment in the tech space.

US Tech 100 chart showing price consolidating with little movement

Source: TN Trader

Despite the weakness in large-cap indices, the small-cap Russell 2000 remains a bright spot, up 1.5% so far this week and on track for its eighth positive week out of the last nine. This is a signal that broader market breadth continues to hold up even as mega caps wobble.

Asian Pacific stock indices mixed

Asian Pacific stock indices wrapped up the week with mixed results. Hong Kong’s Hang Seng fell 0.5%, continuing its recent soft tone. Japan’s Nikkei 225 bucked the trend, rising 0.5%, while Australia’s ASX 200 edged down 0.3%. The Shanghai Composite was effectively unchanged. 

Investors were relieved that a phone call between Presidents Trump and Xi Jinping appeared to go well. The call lasted 90 minutes, suggesting that both sides came away with something, thereby setting the stage for more substantive talks over the coming weeks. 

The Reserve Bank of India announced an unexpected 50 basis point rate cut, which helped boost the Nifty 50 by 1%.

US dollar firmer, euro softer

FX saw increased volatility yesterday in sharp moves, which saw the US dollar on the back foot while the euro rallied. This came as ECB President Lagarde said that the central bank was coming to the end of monetary easing. These moves have effectively reversed this morning. The US dollar recovered overnight while the euro has pulled back.

EUR/USD chart showing price in a volatile state moving between psychological price level

Source: TN Trader

The Japanese yen has also lost ground. But it seems likely that traders will prove reluctant to add to their FX exposure until they get today’s US Non-Farm Payroll report out of the way.

Gold rebounds, silver extends lead

Gold prices edged higher overnight, regaining some ground after Thursday’s sharp retreat. Gold has struggled to reclaim a foothold above $3,390, although it has found some recent support around $3,360 on a closing basis. Investors appear hesitant to add aggressively to positions ahead of today’s data.

Gold chart showing price trading on a level of support

Source: TN Trader

Meanwhile, silver continues to outperform. It pushed further above the $36 level overnight, although it pulled back from its highs early in the European session.

Silver chart showing price edging higher after resistance level breakout

Source: TN Trader

Oil drifts lower ahead of weekend

Crude oil saw little overnight movement. Front-month WTI continued to bump up against resistance just south of $63.50 per barrel. This level has held throughout this week, while $60 has held as support for the last four weeks. 

Downside pressure came from concerns about weakening demand, especially as supply-side headlines point to increased pumping by Saudi Arabia.

Natural Gas testing top of channel

Natural Gas has also been rangebound. The front-month contract has traded broadly between 3.50 and 3.80 for the past three weeks. This morning it was retesting the top end of the range after prices edged higher.

The current level marks a critical test - a breakout higher could spark fresh momentum, while failure to breach the ceiling may prompt a reversal back toward the lower end of the range.

Crypto rebounds sharply

Cryptocurrency markets staged a strong recovery overnight following a significant risk-off pullback which began yesterday afternoon. Bitcoin dropped below recent support but bounced as it approached $100,000.

Ether also slumped through a band of support that had built over the past month. While it has recovered some ground overnight, it was trading below the key $2,500 level in early European trade on Friday. The overall tone remains cautious ahead of the US payroll data.

VIX edges lower, remains subdued

The CBOE Volatility Index (VIX) was a touch weaker in early trade on Friday, giving back some of yesterday’s gains. Stock market volatility continues to hold steady at slightly elevated levels. 

The VIX is yet another market which appears to be consolidating, having pulled back from the highly elevated levels hit two months ago. But it has edged higher over the past month, indicating heightened worries amongst investors as they battle with the market implications of trade tariffs and budget deficits. 

Jobs data in focus

All eyes now turn to today’s US Non-Farm Payroll release. Consensus expectations sit at 125,000, following a string of mixed data earlier in the week: strong JOLTS openings, weak ADP hiring, and a rise in weekly jobless claims.

The outcome of today’s report is expected to play a key role in shaping expectations for the Fed’s next move - and could set the tone for markets heading into next week.

Market outlook

While geopolitical tensions continue to swirl, notably the divergent impacts of the Trump-Xi call and the Trump–Musk clash, risk markets remain relatively constructive. US stock index futures were pointing higher in early trade, suggesting that traders are cautiously optimistic heading into the jobs data.


Suggested articles

See allarrow-icon
arrow-icon

Gain the edge

Sign up and unlock early
access to exclusive trading
insights and educational tips.

I confirm I am 18 years old or above.

By signing up to hear from us, you agree to our terms and privacy policy.

Please keep me updated on Trade Nation’s sponsorships, news, events and offers.

The markets are moving.

Start trading now.

Get startedarrow-icon
arrow-icon

Trade on our
award-winning
platform


en-za

Payment methods

Visa card payment method
Mastercard payment method

Trade on

Regulatory bodies

UK - FCA

Australia - ASIC

Seychelles - FSA

Bahamas - SCB

South Africa - FSCA

Customer support

Sponsors of your favourite teams

The legal stuff

Trading CFDs carries a high level of risk to your capital, and you should only trade with money you can afford to lose. Refer to our legal documents.

Trade Nation is a trading name of Trade Nation Financial (Pty) Ltd, a financial services company registered in South Africa under number 2018 / 418755 / 07, is authorised and regulated by the Financial Sector Conduct Authority (FSCA), with licence number 49846. Our registered office is 19 9th Street, Houghton Estate, Johannesburg, Gauteng, 2198 South Africa.

Finalto (South Africa) (Pty) Limited (“Finalto”), a registered FSP holding a Category I license under FAIS, and an authorized OTC Derivatives Provider (“ODP”) in terms of the Financial Markets Act, 2012 under license no. 46860. 

Finalto provides Trade Nation with a comprehensive ODP regulatory status and liquidity solution. This partnership ensures that Trade Nation Financial (Pty) Ltd is FAIS Compliant and benefits from Finalto's robust regulatory ODP framework and liquidity provision, facilitating secure and efficient trading operations. 

Trade Nation is a trading name of Trade Nation Financial UK Ltd, a financial services company registered in England & Wales under company number 07073413, is authorised and regulated by the Financial Conduct Authority under firm reference number 525164. Our registered office is 14 Bonhill Street, London, EC2A 4BX, United Kingdom. 

Trade Nation is a trading name of Trade Nation Australia Pty Ltd, a financial services company registered in Australia under number ACN 158 065 635, is authorised and regulated by the Australian Securities and Investments Commission (ASIC), with licence number AFSL 422661. Our registered office is Level 17, 123 Pitt Street, Sydney, NSW 2000, Australia. 

Trade Nation is a trading name of Trade Nation Ltd., a financial services company registered in the Bahamas under number 203493 B, is authorised and regulated by the Securities Commission of the Bahamas (SCB), with licence number SIA-F216. Our registered office is No. 3 Bayside Executive Park, West Bay Street & Blake Road, Nassau, New Providence, The Bahamas.

Trade Nation is a trading name of Trade Nation Financial Markets Ltd, a financial services company registered in the Seychelles under number 810589-1, is authorised and regulated by the Financial Services Authority of Seychelles (FSA) with licence number SD150. Our registered office is CT House, Office 6B, Providence, Mahe, Seychelles. 

The information on this site is not directed at residents of the United States or any particular country outside the UK, Australia, South Africa, The Bahamas or Seychelles and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. 

© 2019-2025 Trade Nation. All Rights Reserved