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    European stock markets rebound today, with Italy showing the strongest performance despite recent declines.

    by VT Markets
    /
    Sep 8, 2025

    European Markets Rebound

    Italy’s FTSE MIB rose by 0.3%. Even though it dipped over the last two weeks, Italy’s stock market is still performing well globally this year. Today, European markets are bouncing back, with Germany’s DAX up 1.0% after a slow start to the month. This increase follows last week’s decline, which was due to concerns about high inflation. Now, we need to see if this is just a temporary rise or the start of a longer upward trend. Last week, the Eurozone’s manufacturing PMI data showed a decline for the fourth straight month. This makes things tricky for the European Central Bank. While inflation is still a worry, slow economic growth might stop any more interest rate hikes. This uncertainty can create opportunities for options traders who want to take advantage of the increase in volatility. Historically, September has been the worst month for stocks. The S&P 500 has dropped in September about 55% of the time since 1950. This trend suggests that selling call options or buying puts on indices like the Euro Stoxx 50 could be a smart way to protect against a possible downturn.

    Hedging Strategies For European Markets

    Today, the Euro STOXX 50 Volatility Index (VSTOXX) has slightly dropped to 18.2 but is still above its summer lows, which means traders are not completely confident in this rally. This could be a great opportunity to buy protection at a low cost before volatility possibly spikes. If economic data doesn’t improve, we might see the index return to the 20-22 range in the coming weeks. Italy’s FTSE MIB has performed well this year but has shown some weakness in the past two weeks. With gains of over 20% in 2025, it might be at risk for profit-taking. We’re thinking about using futures to hedge our long positions in Italian stocks as we head into autumn. Create your live VT Markets account and start trading now.

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