DAX, CAC and FTSE Forecast – European Area Sees Stock Market Recovery

• The German DAX bounced from the critical 23,000-euro support level and turned positive after being 'crushed' at the open, viewed as an oversold bounce
• G7 countries announced plans to release crude oil from strategic reserves and potentially address natural gas supply issues with U.S. assistance, providing market support
• All three indices showed technical support at key psychological levels with potential for short-term rallies to 8,000 euros (CAC) and 10,330-10,500 (FTSE 100), though volatility is expected to continue

Summary: European Stock Markets Stage Intraday Recovery Amid War Concerns

Date: March 9, 2026

Key Market Movements

European indices experienced sharp declines at Monday's open due to ongoing war concerns but recovered later in the session, with some indices turning positive. This intraday reversal suggests oversold conditions and emerging buyer interest.

Index Performance and Technical Levels

DAX (Germany): Plunged at open but found critical support at €23,000 and turned positive by mid-session. The German index faces headwinds from energy concerns, though G7 countries' commitment to release strategic crude oil reserves and potential U.S. natural gas arrangements provided support.

CAC 40 (France): Declined toward €7,700 before rebounding. Despite remaining oversold, analysts anticipate potential movement to €8,000 over coming days without changing the broader trend.

FTSE 100 (UK): Gapped lower but found psychological support at 10,000. Recovery potential exists toward filling the gap and reaching the 50-day EMA at 10,330, with further upside to 10,500 possible.

Market Implications

The recovery suggests value hunters are entering European markets at current levels, viewing stocks as attractively priced despite geopolitical tensions. Energy market stabilization efforts by G7 nations appear to be providing temporary relief. However, analysts warn continued volatility is expected as war developments remain the primary market driver.

All three indices show technical oversold conditions, supporting near-term bounce potential, though the broader outlook remains uncertain pending conflict resolution.