DAX, FTSE 100, STOXX 600 indices: The rise of Ericsson and the plummet of Nokia define the mixed dynamics of European markets.

December 5, 2025 — 13:19 Kyiv time

Key Points

• Ericsson's shares are rapidly rising, while Nokia is falling on European exchanges.
• Speculations about ECB rate cuts are affecting bond yields
• The FTSE 100 is declining due to the financial sector and issues in China.

European Markets: Ambiguous Reaction to Various Factors

On Tuesday, European markets showed a mixed dynamic, indicating a slowdown in recent momentum. The German DAX 600 index showed a slight increase, while the British FTSE 100 decreased somewhat, and the pan-European STOXX 600 remained virtually unchanged.

DAX and STOXX: The telecommunications sector leads thanks to Ericsson's surge

In the DAX and STOXX indices, telecommunications stocks have become the main drivers. Ericsson shares surged by 9% after signing a large-scale deal with AT&T for the development of a telecommunications network using ORAN technology. In contrast, Nokia shares fell sharply by 9.7%.

Profitability of Bonds and Speculation Around the ECB

The yield on 10-year German government bonds has reached a six-month low under the influence of traders' bets on a reduction in interest rates by the European Central Bank (ECB) in 2026. These expectations were reinforced by statements from ECB official Isabel Schnabel, who suggested that further interest rate hikes are unlikely.

FTSE: Pressure on the financial sector and exposure to China

The FTSE 100 was negatively affected by financial stocks and banks with exposure to China. Barclays shares fell after Qatar Holdings reduced its stake, and the downgrade of China's credit rating by Moody's impacted banks such as HSBC and Standard Chartered.

Short-term outlook: Cautiously bearish sentiment amid uncertainty

The short-term outlook for the STOXX and DAX markets appears cautiously optimistic, considering the mixed influences: from telecommunications deals to fluctuations in bond yields and geopolitical factors. Given the uncertainty in the financial and telecommunications sectors, as well as macroeconomic speculation, investors may witness a period of increased volatility and cautious trading in the near future. The FTSE-100 index shows bearish sentiment.

Technical Analysis of the DAX Index

The technical analysis of the DAX index currently indicates bullish sentiment. The current daily price of 16418.56 exceeds both the 200-day and 50-day moving averages, which are 15692.41 and 15407.01 respectively, suggesting a positive trend in both the medium and short term.

Furthermore, the price is fluctuating slightly below the minor resistance level of 16427.00. Its position above the main support level of 15993.10 further strengthens the bullish outlook.

This configuration indicates that the DAX is maintaining an upward momentum with the potential to break through a minor resistance level. If this threshold is surpassed, an acceleration of upward movement may occur, which will strengthen bullish sentiment in the market.

Technical Analysis of the FTSE-100 Index

The FTSE-100 index shows a neutral or somewhat bearish technical position. The daily index price of 7469.37 is slightly below the 50-day moving average of 7472.87 and below the 200-day moving average of 7580.02. This position indicates a lack of strong bullish momentum in the short term and suggests caution in the medium term.

The price fluctuates above the minor support level of 7401.87, which provides some support against downward movements. However, it is significantly lower than the minor resistance level of 7524.87 and the trend resistance line of 7621.50, indicating potential obstacles for upward movement.

Proximity to minor support and distance from minor resistance and trend resistance lines together indicate cautious market sentiment with a bearish tilt, if the index fails to overcome these resistance levels.