DE40: DAX loses its growth momentum after ECB rate cut

• ECB lowers interest rates by 25 bp
• DAX loses its early-day momentum
• Bayer successfully defends Roundup product in US Philadelphia court

European markets are experiencing high volatility following the ECB's announcement of a 25 basis point interest rate cut. Despite a positive opening, many indices are losing momentum: Germany's DAX is currently flat, while Spain's IBEX35 (+0.45%) and Poland's WIG20 (+1.5%) are gaining. However, France's CAC40 (-0.3%), Britain's FTSE 100 (-0.15%), and Italy's FTSE MIB (-0.4%) are in the red.

Volatility observed on European markets (intraday). Source: xStation5

DE40

DAX, represented by the DE40 contract, is giving up most of today's gains following the ECB's decision. While the index remains above the 50-period EMA (dark purple), a test of the 20-period EMA will be crucial for its future dynamics. A breakout above this level, coupled with a favorable market sentiment, could signal a return to recent highs.

Source: xStation5

Company News:

• Bayer (BAYN.DE): Bayer has won a lawsuit in Philadelphia regarding alleged negative health effects of its Roundup product. The company's shares are up 0.04% today.
• DHL Express (DHL.DE): DHL Express will invest over 100 million euros in transportation and handling capacity in Q4 2024. The carrier plans to expand its fleet with 8 new Boeing 777s. The company's expected growth for this year is estimated at 8.8%, mainly due to the dynamic development of the e-commerce sector. The carrier's shares are gaining 2.6%.
• Commerzbank (CBK.DE): After acquiring a 9% stake in Commerzbank, the CEO of UniCredit stated the possibility of a full takeover of the German bank. The resulting institution would be the fifth largest bank in the European Union. The bank's shares continue to rise, with a 1.97% gain intraday.
• Siemens (SIE.DE): Siemens is delaying deliveries for the construction of a Turkish nuclear power plant. According to the Turkish energy minister, the delays are political in nature and "harm Turkey instead of sanctioning Russia." Despite this, the company's shares are up 1.5%.