In early European trading, Eurostoxx futures stayed flat, showing a cautious market. UK stocks were the only bright spot yesterday, despite overall market hesitation. US tech shares faced more pressure after the Fed released minutes that were not as soft as expected. However, late buying offered some relief to the market. Today’s mood remains cautious, with US futures staying flat.

Focus on Walmart’s Earnings

Investors are eagerly awaiting Walmart’s earnings report, set to release shortly before US trading begins. This report will be important for traders looking for direction in this subdued market. European futures are barely moving this morning. The VSTOXX volatility index remains around 18.5, indicating that traders expect some fluctuations but not a full-blown crisis. This indecision makes selling out-of-the-money call and put options on indices like the Euro Stoxx 50 a good strategy to earn premiums while the market drifts. The recent Fed minutes remind us of the rate-hike cycles from 2022-2023 that hit tech stocks hard. With the latest July 2025 CPI data showing sticky inflation at 3.4%, the pressure on growth sectors is strong. It might be wise to buy protective puts on tech-heavy indices or set up bear call spreads to guard against further losses.

Opportunities in UK and US Markets

The UK’s strength is not a coincidence; it follows the Bank of England’s indication of a possible rate pause last month. This creates an opportunity for pairs trading—buying FTSE 100 futures and shorting sensitive US tech indices. All eyes are on Walmart’s earnings, which will give crucial insights on US consumer strength, especially after Q2 retail data showed some concerns. While the market seems stuck, the late-session buying we saw on Wall Street shows dip-buying interest still exists. This back-and-forth dynamic creates great opportunities for volatility plays. It may be smart to establish long straddles on stocks with upcoming catalysts or buy inexpensive, short-dated VIX call options ahead of next week’s central bank speeches. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now