European Markets Mixed Amid Geopolitical Tensions; Eurozone Core CPI Rises to 2.5%

## Headline: European Markets Mixed Amid Geopolitical Tensions; Eurozone Core CPI Rises to 2.5% ### Lead European markets are showing mixed performance today as geopolitical tensions persist and new economic data emerges. Eurozone Core CPI for July rose to 2.5%, exceeding forecasts, while overall CPI met expectations at 2.9%. US equity futures are up, with Nasdaq futures gaining 1.19%. ### Session narrative European trading is seeing a mixed picture, with US equity futures pointing higher. Nasdaq futures are up 1.19% at 28574.75, and S&P futures are up 0.50% at 7510. Geopolitical concerns continue to weigh on sentiment, with reports of Iran striking two tankers and Kuwait destroying drones in its airspace. Ukraine's envoy to the US warned of an urgent need for anti-ballistic missiles as Russian attacks intensify. Meanwhile, economic data from the Eurozone shows July Core CPI increasing to 2.5% year-over-year, slightly above the 2.4% forecast. The overall Eurozone CPI for July came in at 2.9%, matching expectations. French CPI also rose to 2.1% year-over-year, above the 1.8% forecast. The US 10-year yield is up 0.88% at 4.66%, and the Dollar Index is up 0.33% at 100.2. Gold is down 1.23% at 4109.3, and Brent crude is up 0.47% at 89.45. Japan intervened in the currency market, spending over Y6 trillion, following comments from BoJ Governor Ueda on the need to be more aware of upside price risk. ### Cross-asset check Equity markets are generally positive, with US equity futures showing gains. The Nasdaq 100 ETF is up 3.67% and the S&P 500 ETF is up 1.78%. Volatility, as measured by the VIX, is down 1.81%. In fixed income, the US 10-year yield is up 0.88%. The US Dollar Index is up 0.33%, with EUR/USD down 0.20% and USD/JPY up 0.21%. Commodities are mixed, with WTI crude up 0.61% and Brent crude up 0.47%, while gold is down 1.23% and silver is down 1.46%. Natural gas is up 0.76%. ### Themes & continuing stories Geopolitical tensions remain a dominant theme, with events in the Middle East and Eastern Europe creating uncertainty. Inflation concerns are highlighted by the Eurozone and French CPI data, which could influence future central bank decisions. Central bank policy, particularly from the Bank of Japan, continues to be a focus, with recent currency intervention and comments from Governor Ueda. Earnings reports are also driving individual stock movements, with Amazon up 12.9% premarket and Apple down 7.35%. ### What’s ahead Traders will continue to monitor geopolitical developments and incoming economic data, especially from the US. Any further central bank commentary or actions will also be closely watched. The ongoing earnings season will provide further insights into corporate performance and economic health.