Focus: Europe

Focus: Europe

Market Close: Thu, 22 January 2026

Daily Insights

At market close, European equities posted modest gains amid a backdrop of sector rotation and easing volatility. Investors appeared to favor cyclical sectors as broader market momentum showed signs of stabilization following recent declines.

Markets rebounded strongly after U.S. President Donald Trump backed off his earlier threats to impose fresh tariffs on several European countries (including Germany, France, the UK, Denmark, Sweden, the Netherlands, Norway, and Finland) linked to his push for U.S. control or influence over Greenland. He referenced a "framework agreement" or deal in sight (possibly involving mineral rights or cooperation) and ruled out using force, leading to relief among investors and a reversal of recent trade war jitters.

The pan-European Stoxx 600 index rose 1%, marking its best daily performance in nearly two months and snapping a recent losing streak. Broader sentiment improved alongside U.S. markets.

Some Ukraine-exposed stocks (e.g., in materials/construction, airlines, banks like Raiffeisen) rallied sharply on reports of upcoming trilateral peace talks involving Ukraine, Russia, and U.S. officials.

Corporate highlights included strong cash flow from Volkswagen's auto unit boosting shares, and Rheinmetall noting potential huge order intake.

Lingering caution remains over U.S. policy unpredictability, geopolitical risks, and mixed economic signals

Swing Trading Ideas (1–4 Weeks) - TEVO Methodology

Today's TEVO swing trade shortlist highlights three compelling Pending Medium-Term Reversal and Top Quantmatix setups, all pointing to long opportunities across financials, consumer services, and staples sectors. These positions target oversold conditions with improving momentum, offering 1-4 week horizons backed by solid historical hit rates above 60%. The uniform bullish bias suggests potential for mean-reversion plays in a market rotating towards cyclicals.

Q Target Δ% Hit%
3I Group Plc (III:XLON) -7.7 35.15 +7.4% 78%
Edenred (EDEN:XPAR) -7.7 20.04 +9.9% 63%
Diageo Plc (DGE:XLON) -6.4 17.74 +4.7% 73%

TEVO trades pick oversold/overbought but improving setups with positive expected value, strong historical hit-rates, giving you only the highest-probability swing opportunities each week.

Market Movements

European benchmarks advanced broadly today, with the Euro Stoxx 50 and DAX leading gains while the FTSE lagged slightly; Materials and Information Technology sectors topped the equal-weighted performance, contrasting Energy's decline despite a sharp rally in natural gas prices. Volatility eased notably as the VSTOXX dropped, and the euro weakened against the dollar. What this means: The rotation into cyclicals signals improving risk sentiment, potentially broadening participation after weekly losses, and aligns with emerging Pending Medium-Term Reversal longs in select names for mean-reversion potential.

Market Snapshot

Equities

1D WTD
Euro Stoxx 50

+1.2%

-1.2%

DAX

+1.2%

-1.7%

STOXX 600

+1.0%

-0.9%

CAC 40

+1.0%

-1.3%

FTSE 100

+0.1%

-0.8%

Fixed Income

1D WTD
GERMANY GOVT 10Y

+0.7%

+1.5%

FX

1D WTD
EUR/USD

-0.4%

+0.7%

Commodities

1D WTD
Natural Gas Future ICE

+10.4%

+7.2%

Volatility

1D WTD
VSTOXX

-8.3%

+6.1%

Focus: Stoxx 600

Top Gainers (1-Day)

1D WTD
Computacenter Pl

+10.1%

+7.0%

Gerresheimer Ag

+9.2%

+7.7%

Raiffeisen Bank

+7.0%

+6.3%

Top Losers (1-Day)

1D WTD
Ubisoft Entertai

-39.8%

-42.1%

Carl Zeiss Me-Br

-16.6%

-25.6%

Essity Aktiebo-B

-7.4%

-7.6%

Sectors (Equal-Weighted)

1D (%)

Materials

+1.4%

Information

+1.3%

Consumer Dis

+1.3%

Health Care

+1.3%

Financials

+1.2%

Industrials

+1.2%

Real Estate

+1.1%

Utilities

+0.8%

Consumer Sta

+0.7%

Communicatio

+0.2%

Energy

-0.6%

Ranked by 1-day change

Quantmatix Success Stories

Our signals delivered robust performance last week, capturing profits up to 16.85% on Short-Term Reversals, including strong long and short trades that highlight Quantmatix's precision in volatile conditions.

Date Profit %
WISE PLC - A (WISE:XLON) Mon, 19 Jan +16.9%
QIAGEN NV (QIA:XETR) Fri, 16 Jan +12.5%
BKW AG (BKW:XSWX) Mon, 19 Jan +11.1%
OCADO GROUP PLC (OCDO:XLON) Fri, 16 Jan +9.7%
TELENOR ASA (TEL:XOSL) Tue, 20 Jan +7.4%
Key
Short-term signals Short-T DR Short-T TopQ
Medium-term signals Medium-T DR Medium-T TopQ Pending Medium-T DR Pending Medium-T TopQ

Disclaimer: These insights are generated using AI and are provided for informational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. The content may be incomplete or contain errors and should not be relied upon for investment decisions. Always consult a qualified financial adviser before making financial choices.