FTSE 100, DAX plunge as European markets open mixed on Iran fears

European markets opened mixed on Tuesday as investors turned cautious at the start of the session, with major indices opening in negative territory.

The UK’s FTSE 100 was trading about 0.3% lower around the 10,300 mark in early deals, while Germany’s DAX hovered near 22,500 and was set to open roughly 0.5% down.

France’s CAC 40 was also seen declining by about 0.5%, reflecting a broad pullback across regional equities.

The weaker start follows a brief rebound in the previous session, with traders reassessing positions as momentum across key European benchmarks continues to fade and near-term direction remains uncertain.

Indices point to broad weakness

Early trading indicates a consistent decline across Europe’s major indices. The FTSE 100 has slipped from recent highs near 10,350, while the DAX remains under pressure around the 23,500–23,600 range.

The CAC 40 is also edging lower, holding close to the 7,800 level.

The weakness extends beyond headline indices.

The pan-European STOXX 600 index has also recorded declines in recent sessions, while the Euro Stoxx 50 has fallen around 4.4% over the past month, even though it remains higher on a yearly basis.

This suggests that selling pressure is not limited to a few markets but is visible across the wider European equity landscape, with multiple sectors contributing to the decline.

Short term momentum softens

European equities had closed higher in the previous session, but those gains have not carried into Tuesday’s trading.

Recent sessions show that indices are struggling to maintain upward momentum, with rallies often followed by pullbacks.

Germany’s DAX, for instance, has seen repeated tests of the 23,000 support level in recent sessions, indicating that traders remain cautious about pushing valuations higher.

The pattern highlights a market that lacks strong conviction, with investors preferring to stay defensive in the near term amid fluctuating signals.

Volatility keeps traders cautious

Trading activity across European markets continues to show elevated volatility. The DAX has recorded wide intraday swings, while the FTSE 100 and CAC 40 have also seen frequent reversals in recent sessions.

Broader market data shows that major European indices have recently posted declines ranging between 1% and over 3% on volatile trading days, underlining the uneven nature of current price action.

This level of fluctuation reflects ongoing uncertainty, with traders reacting quickly to changing signals rather than committing to longer-term positions or directional bets.

Data and deal activity in focus

Investors are also monitoring key economic releases from across Europe, including Germany’s manufacturing PMI, the UK’s S&P Global flash manufacturing PMI, and new car registration data across the EU.

These indicators are expected to provide insight into industrial output and demand trends, both of which remain central to assessing the region’s economic trajectory.

On the corporate front, Estée Lauder said it is in talks with Spain’s Puig over a potential merger.

Puig owns brands such as Jean Paul Gaultier, Charlotte Tilbury, and Rabanne, highlighting ongoing consolidation within the beauty sector.