DE40: Europe maintains narrow consolidation

European markets continue a moderate upward correction during Wednesday's session. Moderately good macroeconomic data allows charts to maintain current valuations, waiting for a more significant growth impulse. The European market is still influenced by peace negotiations and economic competition with the USA and China. The leader of the growth is once again the contract on the Spanish index, which dominates the increases, gaining over 1.6%. The ITA40 and W20 contracts are also performing moderately well, with increases of around 0.5% and 0.2%, respectively. Other indices show movements no greater than 0.1%.
European investors are observing the peace negotiations concerning Ukraine with a mix of anxiety and disbelief. Another round of negotiations proved unproductive, which supports the valuation of defense companies.

Macroeconomic data:

PMI service data from the Eurozone and the UK were published, mostly exceeding expectations.

• Spain: 55.6 (Expected: 56.1)
• Italy: 55 (Expected: 54)
• Germany: 53.1 (Expected: 52.7)
• UK: 51.3 (Expected: 50.5)

The main economies of Europe still show good condition in their service sectors, with a growth trend remaining. However, concerns arise about the sustainability of this momentum amid rising costs and weaker conditions in other sectors of the economy.

DE40 (D1)

Source: xStation5
The price on the chart has recovered some losses from local lows, maintaining a narrow consolidation between ~23900 and ~23450 over recent sessions. The EMA50, EMA100, and FIBO50 averages proved to be strong resistance for buyers, while the FIBO 78.6 level effectively acted as support. The flattening of the MACD, moderate RSI, and momentum of averages slightly favor buyers, which may provide grounds for surpassing the FIBO50 level to test the last trend line (red).

Company news:

• Unproductive negotiations: The lack of any agreements despite successive rounds of negotiations supports the valuations of European defense companies. Rheinmetall (RHM.DE) +1.5%; Hensoldt (HEN.DE) +1%; Leonardo (LDO.IT) +1%.
• Airbus (AIR.DE) - The aircraft manufacturer maintained its performance forecasts despite recent technical issues with its machines. This reassured investors, resulting in a 3% increase in the stock price.
• Hugo Boss (BOSS.DE) - The German fashion giant announced a "reset" of its brand, which would include a greater focus on women's products. The management also warned of significantly worse results for the next year, which would be a consequence of the new strategy. The stock price fell by over 10%.
• Infineon (IFX.DE) - The German technology company concluded a court dispute over patent rights. Although the process ended in defeat, a series of risks for the company were eliminated. The stock price increased by over 2.5%.
• Fraport (FRA.DE) - The airport operator received a series of positive investment recommendations, with the stock price rising by 1.5%.