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EuroStoxx50: The barometer of the euro area under geopolitical pressure!

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The EuroStoxx 50 integrates companies from 8 countries in the euro area and offers a diversified representation of the leaders in each super sector of the European economy.

According to data from September 2025, France represents 34.2% of the total assets of the index, followed by Germany with 30.7%.

This geographical concentration reflects the reality of the European economic fabric, where Paris and Frankfurt play a leading role.

The composition of the index depends on the level of float market capitalization of each company, while the top 10 components alone represent nearly 44% of the index.

The EuroStoxx 50 benefits from a relatively good sectoral distribution.

Cyclical stocks, particularly luxury brands from France, top the list with 18.3% of the index, followed by information technology with 15.8%.

Industry and finance complete this picture with 14.1% and 13.8%, respectively.

Among the flagship companies in the index, we find ASML Holding, the Dutch giant in semiconductor manufacturing machines, LVMH, the French luxury flagship, SAP, the European leader in enterprise software, and Siemens, the German industrial conglomerate.

European stock exchanges are currently torn by uncertainties related to the conflict in the Middle East, oscillating between hopes for negotiations and fears of a deadlock in the conflict.

Graphically, despite its plunge of almost 10% in March, the broad European index is only slightly negative for the current year.

It is worth noting its spectacular bullish journey from its low of 2302 in March 2020.

Indeed, the European index had appreciated by almost 170% to reach a record high of 6199 last February.

However, the sharp decline in March validated a long-term bearish reversal structure in Wolfe Wave.

For memory, this is the same structure that we had detected on the CAC 40 index last March and whose accuracy was once again remarkable.

Thus, the breakthrough and then the return under the oblique formed by points 1 and 3 (in 5) validated the pattern.

The target is located on the bearish oblique marked by points 1 and 4 and would send prices below 4000 points, depending on the time horizon to which it would rally.

To invalidate this structure, it would be necessary to re-enter the major resistance at 5863 on several closings, or to allow time for the index to form a bullish reversal pattern.