Here’s the Europe Daily Preview post for Thursday, June 11, 2026:

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London’s FTSE 100 posted its worst session in weeks while Paris barely flinched — and overnight, a US tech selloff driven by Oracle’s earnings stumble and a fresh semiconductor downdraft hands European markets a split signal heading into Thursday’s open.

Where Europe Closed Last Session

The FTSE 100 was the clear underperformer, dropping 1.41% to 10,227 in Monday’s session. UK-listed miners and energy names bore the brunt as commodity prices softened and the stronger dollar weighed on internationally exposed earnings. The DAX fell 0.74% to 24,433, giving back ground after its recent run, with auto and industrial names under pressure.

By contrast, the southern European and continental exchanges held firm. The CAC 40 edged up 0.05% to 8,203, supported by luxury and defence names. The FTSE MIB gained 0.11% to 50,263, and the AEX added 0.18% to 1,047 — Amsterdam’s semiconductor weight (ASML, NXP) hadn’t yet absorbed the overnight US tech hit. The SMI rose 0.27% to 13,356, with Swiss defensives Nestlé and Roche acting as ballast. The Euro STOXX 50 dipped 0.21% to 6,050, reflecting the tug-of-war between London’s weakness and Continental resilience.

The headline gap between FTSE 100 (-1.41%) and CAC 40 (+0.05%) was the widest single-session divergence in weeks — a reminder that “European equities” is not one trade.

US Overnight Snapshot

Wall Street closed mixed but with a clear tech-negative lean. The S&P 500 slipped 0.26% while the Nasdaq Composite dropped 0.97%, dragged by the technology sector (XLK -1.85%). Oracle’s post-earnings slide — investors spooked by the steep price tag of its AI buildout — set the tone, and Micron and Intel extended the semiconductor selloff into what some analysts are calling a new bearish phase for the sector.

The VIX jumped 5.02% to 19.9, sitting right at the edge of the 20 threshold that typically signals elevated hedging demand. Energy (XLE -1.61%) also weakened, but financials (XLF +0.94%) and materials (XLB +1.62%) bucked the trend — a rotation into value and cyclicals that European banks and miners may echo.

For Europe specifically: Nasdaq’s weakness will pressure ASML, SAP, and Infineon at the open. The Russell 2000’s +0.32% gain suggests small-cap appetite remains, which could support mid-cap European industrials.

Commodity + FX Watch

Gold held steady near $4,110 (+0.10%), offering no strong directional signal but maintaining its safe-haven bid near all-time highs — supportive for Swiss-listed gold miners and refiners. WTI crude firmed to $90.70 (+0.70%), a modest tailwind for Shell and BP after Monday’s FTSE sell-off, though not enough to fully offset the damage. Copper slipped 0.34% to $6.23, a headwind for Glencore, Antofagasta, and Rio Tinto at the London open.

On FX, the dollar strengthened broadly — USD/JPY pushed to 161 and AUD/USD dropped 0.25% to 0.701. Headlines flagged the Dollar Index “preparing for a significant break,” and a stronger greenback typically helps European exporters (Airbus, LVMH, Siemens) on translation but pressures commodity-linked London names.

What to Watch Today

• ECB rate hike pricing: Markets are now pricing in an ECB hike, which one top economist has publicly called a “mistake in the making.” Watch eurozone 2-year yields and rate-sensitive bank stocks (BNP Paribas, Deutsche Bank, ING) for any repricing — this is the single biggest macro question for European equities right now.
• Semiconductor spillover: ASML, Infineon, STMicroelectronics, and BE Semiconductor will absorb the US chip selloff. If Amsterdam’s AEX flips red after Monday’s +0.18%, semi weakness is the likely culprit.
• FTSE 100 recovery test: Monday’s 1.41% drop was outsized. A bounce attempt hinges on whether oil holds above $90 and miners stabilise — watch Shell, BP, Rio Tinto, and Anglo American in the first 30 minutes.
• Materials rotation: US materials surged 1.62% overnight. European equivalents — ArcelorMittal, CRH, Holcim — may see sympathy buying, especially if the infrastructure and re-shoring narrative extends across the Atlantic.

Bottom Line

The setup into Thursday’s European open is cautiously defensive. Tech names face a clear headwind from overnight US semiconductor weakness, the FTSE 100 needs to prove Monday’s 1.41% drop was a one-day event rather than the start of something deeper, and the ECB rate hike debate adds a layer of uncertainty for rate-sensitive sectors. The rotation into financials and materials overnight offers pockets of opportunity, but with VIX sitting at 19.9 and the dollar pressing higher, Luna3 sees the balance of risks tilted toward a soft open with selective bright spots in cyclicals and banks.

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