Eurostoxx futures are stable in early European trading. German DAX futures rose by 0.1%, while French CAC 40 and UK FTSE futures remained unchanged. Yesterday’s performance was mixed, and US futures show a cautious mood today. Nvidia reported better-than-expected earnings, but worries about China and lower-than-expected sales in its data center business have created some hesitation. Nvidia’s shares fell after hours, impacting market sentiment for the upcoming session.

Performance Of US Futures

US futures show different trends: S&P 500 futures went down by 0.1%, Nasdaq futures dropped by 0.3%, while Dow futures grew by 0.1%. With flat market openings and a cautious atmosphere, it’s wise to avoid aggressive bets. The mixed signals—tech struggling while other sectors hold steady—suggest a rotation phase rather than a broad market decline. This uncertainty means it’s better to focus on managing risk than chasing big profits. The cautious sentiment in Europe fits with the recent economic data. For instance, Germany’s IFO Business Climate Index for August 2025 was a lukewarm 88.5, showing ongoing stagnation with no strong momentum. Thus, buying expensive, out-of-the-money call options on the Eurostoxx 50 doesn’t seem smart right now. Nvidia’s warning is an important development, as its performance has significantly influenced the tech sector for the past two years. Concerns about China and slowing data center sales follow recent reports indicating a drop in corporate IT spending growth—from over 10% in 2024 to just under 4% now. This raises doubts about the high-growth story that has supported tech valuations, making protective options on tech-heavy indices like the Nasdaq a wise move.

Opportunities In Volatility Levels

In this environment, we should explore volatility levels for opportunities. The VSTOXX index, which measures Eurostoxx 50 volatility, is around 18—this isn’t high but indicates some uncertainty. This is a good time to buy protection affordably, and selling covered calls on existing holdings could earn income in what might be a sideways market in the coming weeks. We are keeping an eye on upcoming inflation data and signals from the European Central Bank’s meeting next month. This period of quiet trading feels reminiscent of the market consolidation from the fall of 2024 before the year-end rally. However, given the slowing growth indicators this time, expecting a similar outcome might be too optimistic. Create your live VT Markets account and start trading now.

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