European Indices Hold Steady Ahead Of PMI And Bank Speeches

(MENAFN- DailyFX (IG)) European markets face cautious start

European equity markets began the week on a mixed note, with investors taking a cautious stance ahead of key purchasing managers' index (PMI) data and speeches from officials at the United States (US) Federal Reserve and the Bank of England (BoE) that could provide insight into policy directions for the remainder of the year.

The DAX 40 continued its recent underperformance, falling 0.48% to 23,527, while the FTSE 100 eked out a modest 10-point gain to finish at 9226. The gain in the FTSE follows the BoE's decision last week to keep the official bank rate unchanged at 4% and where it emphasised inflation risks without expressing significant concerns about the labour market softening.

Tonight, attention shifts to BoE Chief Economist Huw Pill's speech, following the release of the United Kingdom (UK) flash PMI data, previewed below.

UK composite PMI

Date: Tuesday 23 September at 6.30pm AEST

The UK composite PMI for September is expected to ease to 53 from 53.5 previously, marking the fifth month of expansion.

A projected dip in services to 53.5 from 54.2 is expected to be offset by a modest rebound in manufacturing to 47.1 from 47.

UK composite PMI chart Source: TradingEconomics Source: TradingEconomics FTSE 100 technical analysis

Late August, the FTSE hit a fresh record high of 9357, which it retested in mid-September, before falling back towards 9200 - a level it has spent the past four sessions glued to as part of a correction.

A sustained break above the 9357 record high would indicate the correction is complete and the uptrend has resumed, with scope towards 9500.

However, as long as the FTSE remains below the 9357 record high, there is the potential for a dip back to 9100 as part of a sideways correction. If the support at 9100 were to fail, it would pave the way for a deeper decline towards the psychologically important 9000 support level .

FTSE 100 daily candlestick chart Source: TradingView Source: TradingView DAX 40 technical analysis

After a strong rally from the April low of 18,489 to the July high of 24,639, the DAX has spent the past two and a half months consolidating those gains.

If the DAX were to see a sustained break above initial resistance at 24,000 and then above the 24,450 to 24,650 resistance zone , it would signal that the correction is complete and that the uptrend has resumed towards 25,000.

Until then, the expectation is for the DAX to continue consolidating the gains made between April and June. As part of this, a dip back to support at 23,000 to 22,750, which includes the 200-day moving average , is possible.

DAX 40 daily candlestick chart Source: TradingView Source: TradingView

• Source: TradingView. The figures stated are as of 23 September 2025 . Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.

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