European equities had a whipsaw week: an initial peace-deal relief rally gave way to mounting pressure on autos and a softer DAX into Friday.
Early in the week, analysts framed a US-Iran framework deal as a clear positive — research flagged the DAX trading above 25,000, with travel names like Lufthansa and TUI cited as relief-rally beneficiaries. The FTSE 100 was tagged as a tactical laggard given its energy weighting if oil stays soft. One tactical thread argued European equities could outperform the S&P 500 on negative positioning and falling WTI, while another constructive view leaned on AI-driven semiconductor demand and earnings upgrades. Grid infrastructure was highlighted as the structural capex story, pointing to the €9.5bn TenneT Germany deal.
Sentiment soured midweek as German autos took center stage. BMW cut profit guidance on a worsening China market, and commentary extended the bearish read to Volkswagen and Mercedes — citing collapsing China revenues, EV commoditization and margin warnings near 1%. Douglas hit an all-time low after a guidance cut. By Thursday, research saw the DAX slipping back below 24,900.