European equities are leaning bearish in the near term, with Germany's DAX squeezed hardest.
Researchers point to a global bond-market selloff as the main drag: as US and European yields climb, risk assets are being sold, and one camp of analysts sees no quick stabilization. A separate pre-market read flagged a positive DAX open near 25,700 — but that's an intraday signal, not a macro call, so it doesn't really contradict the broader cautious view.
The published research consensus is that Germany faces an extra headwind: international investors are staying on the sidelines after political setbacks in regional elections, with only modestly better PMI data to offset the mood. Zooming out, some recently-published views on the eurozone as a whole strike a more constructive tone, citing composite PMIs at their strongest since April 2023 — though analysts flag that political risk keeps enthusiasm in check.
Net-net from the research: Germany is the weak link, while the rest of the eurozone gets a slightly more constructive read on improving activity data.