Defense Rally Continues, Plus Your Weekly Swing Trade Setups

QM Research

Quantmatix Report

Focus: Europe

Market Close: Thu, 08 January 2026

Daily Insights

At market close, European markets exhibited mixed performance amid ongoing sector rotation and cautious risk appetite. Broad indices showed modest divergence, with some benchmarks edging higher while others faced slight pressure from technology and materials weakness.

Defense stocks continued their multi-day rally, hitting record highs in some cases → Companies like Rheinmetall, Leonardo, BAE Systems, and Thales gained significantly, boosted by U.S. President Trump's calls for higher military spending, threats related to Greenland, and broader geopolitical risks stemming from events in Venezuela. Gains in defense offset weakness elsewhere.

Overall, markets took a breather after a robust start to 2026, with investors weighing geopolitics, commodity trends, and early corporate updates. The backdrop remains supportive for European equities longer-term, with analysts noting potential for further gains driven by economic recovery and sector rotations.

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

WOLTERS KLUWER (WKL:XAMS) | MT-Qscore -8.6 | Medium-Term Reversal positive signals today. | Target1: 95.22 | 5.6% | Hit Rate: 82%
HIKMA PHARMACEUT (HIK:XLON) | MT-Qscore -8.7 | Medium-Term Reversal positive signals today. | Target1: 16.45 | 6.1% | Hit Rate: 71%
AMBU A/S-B (AMBUB:XCSE) | MT-Qscore -7.9 | Medium-Term Reversal positive signals today. | Target1: 94.46 | 6.7% | Hit Rate: 65%
ARCADIS NV (ARCAD:XAMS) | MT-Qscore -8.7 | Medium-Term Reversal positive signals today. | Target1: 39.24 | 7.9% | Hit Rate: 64%
SAP SE (SAP:XETR) | MT-Qscore -8.4 | Medium-Term Reversal positive signals today. | Target1: 218.22 | 5.7% | Hit Rate: 62%
REPLY SPA (REY:MTAA) | MT-Qscore -7.0 | Medium-Term Reversal positive signals today. | Target1: 123.0 | 4.8% | Hit Rate: 70%
SOFTCAT PLC (SCT:XLON) | MT-Qscore -5.6 | Medium-Term Reversal positive signals today. | Target1: 15.27 | 4.3% | Hit Rate: 63%
FASTIGHETS-B SHS (BALDB:XSTO) | MT-Qscore -7.3 | Medium-Term Reversal positive signals today. | Target1: 72.15 | 3.2% | Hit Rate: 70%
ROTORK PLC (ROR:XLON) | MT-Qscore -4.4 | Medium-Term Reversal positive signals today. | Target1: 3.48 | 3.3% | Hit Rate: 63%
DEMANT A/S (DEMANT:XCSE) | MT-Qscore -7.4 | Medium-Term Reversal positive signals today. | Target1: 230.28 | 4.4% | Hit Rate: 61%

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 equity markets traded mixed over the last trading day, with major indices showing slight declines amid pressure in industrials and information technology sectors. Financials and consumer discretionary areas registered relative gains, reflecting selective rotation toward value-oriented themes. Volatility edged higher, as measured by the VSTOXX, while week-to-date trends highlight strength in health care and real estate. Individual movers included standout performers in consumer discretionary alongside notable declines in consumer staples and energy names. Broader sentiment remains cautious, balancing recent gains with underlying momentum shifts.

Market Snapshot

Indices

	1D	WTD
CAC 40	+0.1%	+0.6%
DAX Index	+0.0%	+2.4%
Ftse 100 Index	-0.0%	+0.9%
Stoxx 600	-0.2%	+1.3%
Euro Stoxx 50	-0.3%	+0.9%

Volatility

	1D	WTD
VSTOXX Index	+1.5%	+4.6%

Focus Index

Stoxx 600

Top Gainers (1-Day)

	1D	WTD
Puma Se	+8.6%	+8.8%
Coca-Cola Hbc Ag	+5.5%	+4.0%
Volvo Car Ab-B	+5.4%	0%

Top Losers (1-Day)

	1D	WTD
Assoc Brit Foods	-14.0%	-12.9%
Mycronic Ab	-7.7%	-2.6%
Orlen Sa	-7.1%	-8.6%

Top Sector Gainers (1-Day)

	1D	WTD
Financials	+0.5%	-0.2%
Consumer Discretionary	+0.3%	+0.3%
Consumer Staples	+0.3%	-0.2%

* equal-weighted

Top Sector Losers (1-Day)

	1D	WTD
Information Technology	-1.7%	+2.6%
Materials	-0.8%	+0.3%
Industrials	-0.8%	+2.9%