DE40: DAX hits a new ATH 📈

• DAX at new historic highs
• Demand side dominates during the first half of Friday's session 
• Investment banks review their analytical coverage on the German trading floor

Overall market situation:

This week's last session on European markets appears to have been a successful one. Although there is still some time left before the close of trading, most of the benchmarks are now posting relatively large gains. They are led by Germany's DAX index, where the wave of appreciation has already reached 0.5% on the spot market and lifted the index to its new historic highs. Markets in France and the UK are gaining even more strongly (+0.68% and 0.75%, respectively).

Investors in the second part of the day will focus on data from the Canadian labor market and the UoM sentiment report.  

European companies listed during Friday's trading session are currently trading higher. Source: xStation 5

Volatility currently observed in the DAX index. Source: Bloomberg Financial LP

Germany's benchmark DE40 is trading up 0.3% during today's session, thus breaking through to new historic highs. In the medium term, once this barrier has been broken through, the most important support zones that could be key to maintaining the uptrend are the zone of the last peak near 18,800 points, the double peak in the 18,400 point zone and the 50-day exponential moving average (blue curve on the chart). Source: xStation 5

News:

Berenberg upgraded shares of Zalando (ZAL.DE) to a “buy” rating. The rating was previously “hold.” The analysts pointed to the first signs of successful implementation of Zalando's newly outlined strategy, as well as improved momentum in the end markets. The new target price is €29.70 per share (previously it was €25.20 per share). 

Jefferies downgraded shares of DWS (DWS.DE) to “hold.” Target price set at 41 euros per share. 

Munich Re (MUV2.DE) gained 2.5% following an improved recommendation from Bank of America (BofA). The new rating is “buy” with a medium-term target price set at €530. 

In contrast, analysts at Berneberg commented negatively on Symrise (SY1.DE). Unfavorable price pressure in the pet food sector encouraged the analysts to reduce their rating on the company's shares to a “hold” rating. 

Other news coming out of German companies. Source: Bloomberg Financial LP