Is Europe Still Bullish or Starting to Be Cautious?
The European session on Tuesday, October 28, 2025, opened on a more cautious note. After consecutive rallies and a new record on the STOXX 600 earlier this week, markets are expected to move slightly lower/flat at the opening as investors begin to exercise restraint. The focus now is no longer simply the euphoria of the US-China trade truce, but also its impact on central bank policy and corporate earnings. Market participants await clarity from the Fed (which is expected to cut interest rates again this week), as well as the ECB's decision and the Bank of Japan's direction, while assessing the performance reports of major companies.
Risk sentiment remains strong after the US and China said they have prepared a framework agreement that could halt new US tariffs and delay Beijing's export controls on rare earths. Expectations that Trump and Xi will formalize a "trade truce" this week helped push European stocks to their highest levels for three consecutive sessions, particularly in banking and cyclical sectors. But at today's opening, European investors are starting to ask deeper questions: is this story strong enough to drive real growth in Europe, or is it just a temporary sentiment before the Fed speaks? That's why the tone this morning is more subdued, rather than euphoric.
Source: Newsmaker.id
