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CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

From Summer to Volatility: Why June Is a Crucial Month for the DAX and OMX

Man analyzes DAX & OMX volatility on PC for CFD strategies.

The summer months are traditionally viewed as quiet periods for financial markets. Lower trading volumes, fewer corporate announcements, and slower macro developments usually characterize June and July. But in 2025, June has defied expectations — particularly across Europe’s DAX and OMX indices.

Throughout the month, intraday volatility has surged. Both the German DAX and the Nordic OMX indices have posted swings greater than 2% in single sessions. For traders, especially those using CFDs, this has triggered a reevaluation of strategies historically often built around the summer calm.

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Central to the disruption are interest rate dynamics. Earlier in June, the European Central Bank cut rates — a widely expected move — but market reactions signaled confusion. Mixed messages from ECB members on whether further cuts would follow left investors uncertain. This affected rate-sensitive sectors like real estate, financials, and consumer cyclicals.

Germany’s DAX, heavily weighted with exporters and industrials, responded to weak PMI data and lower-than-expected Chinese import figures. These indicators stoked concerns about a global slowdown, which rippled across manufacturing-heavy equities.

In the Nordics, OMX indices were pushed around by currency shifts. Sectors such as commercial real estate and banks saw particularly volatile price action, as traders struggled to price in risk from both local and global pressures.

Adding to this, political risk emerged unexpectedly. French President Macron’s snap election announcement introduced uncertainty into the eurozone’s core. Financial markets typically dislike political unknowns — and this development sent ripple effects across European equity and bond markets.

For CFD traders, these overlapping risk factors have created a summer landscape that resembles a typical Q4 earnings season rather than a sleepy mid-year lull. Many have turned to short-term strategies, using tighter stop-loss levels and increased use of technical indicators like Bollinger Bands, ATR, and RSI.

Another major feature of June 2025 has been volatility itself — with instruments like the VSTOXX gaining traction. Used as a proxy for European volatility, the index has seen increasing volume as institutional investors seek hedges against unpredictable movement in traditional indices.

Furthermore, ESG-related announcements have added complexity. EU-level updates on climate investment frameworks and green finance rules have led to sector-specific moves, particularly in clean energy and industrials. These kinds of macro-micro intersections are unusual for June, making this month an outlier.

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Importantly, many institutional strategies have already adapted. Large funds that historically pulled back exposure during summer are now increasing activity — responding to event-driven price action rather than waiting for autumn catalysts.

Even within Scandinavian markets, idiosyncratic risks are rising. In Norway, revised GDP figures and housing data have moved the OBX. In Sweden, speculation around currency interventions has spurred moves in EUR/SEK and local bank stocks. For regional CFD traders, this reinforces the need for dynamic, cross-asset monitoring.

The conclusion

June is no longer a passive month. Whether driven by central bank ambiguity, geopolitical tension, or sector-level catalysts, summer markets now seem to demand the same level of focus as more traditionally active periods. Traders who underestimate June 2025 may find themselves on the wrong side of the trade.

Past performance does not guarantee or predict future performance. This article is offered for general information purposes only and does not constitute investment advice.

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71% of retail CFD accounts lose money.

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Capitalise on volatility in index markets

Take a position on moving index prices. Never miss an opportunity.

71% of retail CFD accounts lose money.

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