Eurostoxx futures are up 0.5% in early European trading. This positive trend continues as the weekend approaches, even with a regional holiday vibe. German DAX futures have also risen by 0.5%, and UK FTSE futures show similar growth. The DAX is bouncing back from losses over the last two weeks and is aiming for new record highs.

US Futures and Intel’s Comeback

In the US, futures are steady, with S&P 500 futures climbing 0.2% and Dow futures gaining 0.7%. This lift is partly due to good news from UnitedHealth. Intel is also recovering after its announcement earlier today. With European markets showing strength, it’s a good opportunity to take advantage of the momentum in the DAX. The index is close to its previous highs and is now aiming for the important 20,000 mark. Given the lower trading volumes typical in August, seen back in summer 2023, positions in DAX call options could provide leveraged exposure to this upward trend. The current low volatility, with the VSTOXX index near 14, makes these options relatively affordable. However, the holiday period can cause sudden shifts with unexpected news. Traders might want to use call spreads to manage their risk while aiming for new highs.

Dow’s Performance and UnitedHealth’s Influence

In the US, the Dow is leading the S&P 500 mainly due to confidence in stocks like UnitedHealth. This optimism comes after a strong Q2 2025 earnings report, which showed a 12% year-over-year revenue rise in their Optum division. Selling out-of-the-money puts on UnitedHealth could help us earn premium and benefit from the high confidence of major investors. Intel’s recovery also comes from a specific news event, with confirmation of a significant government contract for its foundry services. For traders, this creates a short-term opportunity to leverage the surge in momentum and implied volatility. We view this as a tactical play on Intel’s situation rather than a signal for the entire semiconductor market. Overall, this positive mood is present despite the latest July 2025 Eurozone CPI data at 2.1%, slightly above the ECB’s target. The market is currently overlooking this, betting that central banks will keep their positions steady. This poses a key risk in the upcoming weeks, as any hawkish comments could quickly reverse these gains. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now