A session marked by constant swings in direction, the first of the new trading week, which began under pressure with the General Index testing levels marginally below 2,325 points, following the cautious international sentiment.
It should be noted that during the morning lows, no FTSE 25 stock managed to hold its ground, even remaining unchanged, while the number of declining stocks was more than three times that of advancing ones, a ratio that improved somewhat thereafter.
Both during the morning lows and in the subsequent rebound, the index-heavy banking sector was the one that set the tone and sentiment, but it was unable to turn the General Index into a positive close, as sellers, through the final auctions, were the ones who had the last word.
Looking at stock market developments in chronological order, Wall Street’s major indices closed Friday’s trading with significant losses, with the tech-heavy Nasdaq posting its biggest one-day drop since last year, following stronger-than-expected labor market data released for May, which fueled fears of a more aggressive monetary policy from the U.S. Federal Reserve. The S&P 500 ended its nine-week winning streak, the longest since the one that concluded in December 2023.
Asian and Pacific markets followed the downward trend this morning, with the Korean Kospi standing out with a -8.29% drop, while, at the time of writing, the major European markets are moving cautiously, despite Iran’s second announcement, which appeared to ease concerns and dampen oil’s initial gains.
More specifically, Iran’s armed forces announced that their operations against Israel have been completed.
On the other hand, a high-ranking Israeli official stated today on the Israeli television network “Channel 12” that “Israel has ceased its attacks against Iran, at the request of U.S. President Donald Trump.”
This followed a new escalation of geopolitical tensions in the Middle East, rising oil prices, rising bond yields, and all of the above, combined with the ongoing decline in tech valuations, created a mix of pressures that proved difficult for stock markets to manage, with active traders adopting a wait-and-see stance, or even reducing positions, until visibility is restored.
According to the converging assessments of foreign fund managers, “an expensive stock market, particularly in the U.S., has very limited room for error, driving investors to exit. When stocks, precious metals, and bonds are all under pressure at the same time, ‘safe havens’ become scarce. As for the upcoming ECB meeting, the first rate hike of the cycle has been carefully signaled by the bank itself, so the key point will be whatever guidance on the next steps can be gleaned from Christine Lagarde’s press conference.”
On the other hand, according to economists cited by Bloomberg, “the ECB risks repeating the mistake of 2011, when it implemented two interest rate hikes under the presidency of Jean-Claude Trichet, only to be forced to reverse them a few months later as the debt crisis plunged Europe into a new recession.”
“The prospect of two interest rate hikes by the European Central Bank in 2026, as a result of inflationary pressures linked to the war in the Middle East, changes the landscape for Greek banks. The market considers a first hike of 25 basis points at the ECB’s June 11 meeting to be almost certain, with the main deposit rate set at 2.25%. This move could add approximately €74 million to this year’s revenues for Eurobank, Piraeus, Alpha Bank, and National Bank of Greece, an amount corresponding to an average excess of 86 basis points over current targets. The essence lies in the shift in the investment narrative: from concerns about pressure on net interest income to a scenario of gradual recovery, with additional upside potential if the upward trend in interest rates continues,” as noted by Beta Sec.
It is worth noting that, according to the economic calendar, the ECB’s upcoming meetings and announcements regarding its monetary policy are scheduled for June 11, July 23, September 10, October 29, and December 17, 2026.
The Fed’s corresponding meetings are scheduled for June 17, July 29, September 16, October 28, and December 9, 2026.
Beyond that, “low visibility in the Middle East will keep the mood cautious on the Athens Stock Exchange. Investor attention is focused on the ECB meeting on Thursday, with the market pricing in a 25-basis-point rate hike, while particular emphasis will be placed on the updated inflation and growth forecasts. At the same time, high bond yields and expectations that the Fed will maintain its tight monetary policy, following strong U.S. employment data, continue to influence risk appetite. “Progress in negotiations between the U.S. and Iran is a prerequisite for the ATHEX index to return to the 2,400-point level,” emphasizes Kyklos Securities.
Meanwhile, according to an announcement by LAMDA (+0.16%), “the bond was oversubscribed by 1.7 times. The final yield on the bonds was set at 4.20% and the coupon rate at 4.20% per annum.” Only 10% of the issue was allocated to institutional investors. Trading of the new bonds will begin on Wednesday, June 10, 2026.
According to an announcement by the Athens Stock Exchange, “following the completion of the combined offering of new PPC shares (+0.37%), the free float of the company’s shares is changing from 61% to 48% in all indices in which they are included. At the same time, the weighting factor of the company’s shares in the ATHEX ESG Index is adjusted from 59.04% to 46.45%. The above changes will take effect as of the trading session on Monday, June 22, 2026.”
Major European markets are trading in negative territory and well off their morning lows, with active traders attempting to price in developments in the Middle East and gauge the impact of central bank announcements.
Bond market yields are trading below their morning highs. More specifically, the yield on the U.S. 2-year note stands at 4.15%, the 10-year note at 4.54% (the 30-year note at 5.01%). The yield on the Greek 10-year note is at 3.743%.
It should be noted that if government bond yields remain at these levels, or rise even higher, the stock markets will get the “message”—albeit with a time lag—with all that this may entail (!)
“The real problem no longer lies in monetary policy, but in the public finances of the United States. The U.S. economy is gradually entering a new long-term inflationary regime, where the authorities’ primary goal will not be to combat inflation, but to manage the ever-increasing public debt. If markets demand higher interest rates to continue financing U.S. debt, then the cost of servicing that debt could rise much more rapidly. The main concern is that the United States is entering a vicious cycle, because as interest rates rise, budget deficits grow larger. And obviously, larger deficits require more borrowing, which in turn further increases interest payments. This is, in other words, a mechanism that, if not halted, could evolve into what economists call a “debt trap.” “The markets’ response to this question is likely to determine not only the trajectory of interest rates, but also the valuations of stocks, bonds, and precious metals for many years to come,” emphasizes Symeon Mavroudis (portfolio manager at Fast Finance SA).
The General Index fluctuated between 2,324.38 (-1.33%) and 2,364.47 points (+0.37%). At 5:00 p.m., it stood at 2,356.38 (+0.03%) and closed at 2,352.54 points, with daily losses of 0.13%.
Turnover, the highest in the last four sessions, stood at 265.2 million, of which 56.1 million related to pre-arranged trades (OPTIMA, ALWN, CENER, AKTR, BYLOT, ADMIE, ETE, ALFA, PIR, KOUAL, DEI, ALMY, LAMDA, EUROB, ETE, TRASTOR), with PIR, DEI, ALFA, and ETE accounting for 55% of the total gross trading value.
PIR accounted for 22.65% of the turnover.
Of the total turnover of 265.2 million, 236.3 million relates to transactions in FTSE 25 shares.
The picture in the large-cap sector
Far from the morning lows, the heavyweight banking stocks closed the session. More specifically, ALPHA (+1.94%) fell to 3.641 euros (-1.81%), NBG (-0.48%) to €14.22 (-3.4%), Eurobank (+1.39%) to €3.83 (-1.62%), PIR (+1.36%) to €8.536 (-1.66%), BOCHGR (-0.69%) to €9.205 (-2.85%), and OPTIMA (-0.29%) to €10.00 (-1.86%).
The banking sector index fluctuated between 2,610.81 (-1.64%) and 2,700.05 points (+1.72%). At 5:00 p.m., it stood at 2,679.21 (+0.94%) and closed at 2,672.44 points, with daily gains of 0.68%.
The DTR has a daily buy signal, which is negated by a pullback and close below 2,454 points. The next support levels are at 2,427 (simple 200-day moving average) and 2,378 points (exponential 200-day moving average). The next resistance levels are at 2,741, 2,848, and 2,900 points.
The final picture on the non-banking blue-chip board cannot be described as satisfactory, with GEKTERNA (+0.23%), PPC (+0.37%), LAMDA (+0.16%), and OTE (+0.44%) managing to close in positive territory.
Among the day’s losers, the biggest losses were for AKTR (-2.06%), ALWN (-3.66%), BIO (-3.12%), and BELA (-2.17%).
According to a statement from Jumbo, “the Group’s total sales in May increased by approximately 4%, as did sales for the five-month period from January to May 2026, despite macroeconomic pressures in the Romanian market. The sales growth rate for the franchise and wholesale network remained lower than last year, due both to the caution caused by geopolitical uncertainty regarding the timing of commercial decisions and to the comparison with a particularly strong base last year.”
It should be noted that in the wake of the above announcements, BELA shares (-2.17%) traded consistently in negative territory and closed at the day’s low. If the stock continues to move sideways, a decline to 21.22 euros cannot be ruled out. For a partial change in the technical picture, consecutive closes above 25.33 euros (200-day exponential moving average) are required.
According to an announcement by Motor Oil (-0.40%), “a series of meetings with investors has begun, starting on June 8, 2026. Subject to market conditions, this will be followed by the issuance of senior unsecured bonds with a five-year maturity and a total nominal value of up to €400 million. No assurance is given that the issuance will take place or, if it does, regarding its final terms, size, or completion. The company intends to use the proceeds from the issuance, together with existing cash on hand, to repay the entire amount of its existing bonds totaling €400 million with a coupon rate of 2.125% and maturing in 2026, including the payment of accrued and unpaid interest, as well as for the repayment of the issue’s commissions and expenses.”
It should be noted that MOI’s stock climbed to €40.4 (+1.15%), aiming to close at a new all-time high, but was “let down” by the final auctions.
Analysts’ assessments
“Volatility in global markets is expected to remain high. These factors may put pressure on high-risk assets,” according to Beta Sec.
“The zone of previous highs continues to act as a strong resistance level, with the market needing more time and fresh ‘fuel’ to attempt a convincing breakout,” as noted by Ilias Zacharakis.
The banking sector remains the key driver of the general index’s performance, given its increased weighting, with the result that any weakness in the sector disproportionately affects the broader market.
At the same time, one should not overlook the significant absorption of liquidity caused by PPC’s large rights offering, though this did not reverse the overall positive trend.
On the other side of the Atlantic, the U.S. market significantly outperformed Europe during the recent upward rally. However, a relatively minor negative surprise in the labor market data proved sufficient to trigger the first substantial correction in quite some time.
It is worth noting that, even after Friday’s losses, the major U.S. indices remain at significantly higher levels compared to their previous all-time highs, while European markets have merely managed to approach them.
At the same time, Wall Street is entering one of the most intense periods of public offerings in recent years. The completion of one of the largest IPOs in the history of U.S. markets marks the start of a wave of new listings, which are expected to raise significant capital from investors.
Following the initial listing, the new company’s inclusion in major stock market indices is expected to generate additional passive inflows through ETFs and institutional portfolios that track the indices.
At the same time, several other companies are accelerating their plans for an initial public offering (IPO), seeking to capitalize on the particularly favorable environment of high liquidity and attractive valuations.
The concentration of so many offerings in a short period of time is likely to act as a mechanism for absorbing liquidity from the market, increasing the likelihood of short-term corrective moves or periods of accumulation.
This does not necessarily imply a change in the long-term trend, but it is a factor that investors must monitor closely.
Equally important are the upcoming decisions by central banks regarding monetary policy and interest rates. Markets continue to assess the pace of inflation’s decline and the possibility of new interventions, factors that could influence both risk appetite and global stock valuations,” notes Mr. Zacharakis (Chairman and CEO of Fast Finance SA).