European stock market sentiment is mixed today, in anticipation of the release of November CPI inflation from the U.S. at 1:30 p.m GMT. The DE40 futures gains slightly 0.15%.
- Shares of SAP (SAP.DE) and Siemens Energy (ENR.DE) - two big 'contributors' to this year's DAX rise - lose about 2%; Carl Zeiss Meditec retreats nearly 8%; TUI shares lose 5%
- Henkel, Vonovia and Siemens AG gain; shares of armaments concerns Rheinmetall and Hensoldt return to 'favour'. Thyssenkrupp (TKA.DE) continues yesterday's growth.
The sentiments during the European session is mixed today; a pullback is seen in the shares of Spanish Inditex (ITX.ES); German SAP (SAP.DE) is losing. ADRs of U.S. Alphabet (ABEA.DE) are up 3%; the decline is deepened by Nvidia (NVDA.US). Source: xStation5
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In the German DAX, industrial and financial companies are doing better today. Technology and consumer industries under pressure. Source: Bloomberg Finance L.P.
DE40 (H1 interval)
The DAX (DE40) contract is breaking out above the EMA50, which, combined with the double bottom formation, may suggest buying pressure for a retest of historical maxima.
Source: xStation5
News from companies
- DZ Bank has downgraded its recommendation to 'sell' on Siemens Energy (ENR.DE), the leader of this year's DAX index gains. The target price was set at EUR 38; the stock loses almost 2%, to EUR 48
- Steelmaker and naval fleet supplier Thyssenkrupp (TKA.DE) gained yesterday on a wave of news of aid from the German government and the potential entry of the state treasury into the company's shareholding; the stock is up 25% over the past month and about 50% from its historic low, in September.
Zalando under pressure from About You acquisition
Zalando shares lose nearly 3%; the company is looking to acquire e-commerce retailer About You for €1.3 billion; 72% below its 2021 IPO price; the offered price is €23 per share; 67% above yesterday's close. Investors correctly assess that the acquisition will increase the German company's stake in the European e-commerce market, currently valued at around EUR450 billion, although short-term market reaction suggests some uncertainty due to lower post-acquisition cash flow. Much of the initial downside on the stock has been erased, however. Zalando expects long-term synergistic gains from the About You absorption in the form of lower cost of ownership or other forms at around EUR 100 million per year. About You has 12 million monthly active users who can choose from a range of about 4,000 companies on the platform; it operates in 100 countries.
Zalando shares (D1 interval)
Zalando's shares have left an upward price channel, and the reaction to the downward gap suggests that the market may be inclined to 'buy' panic on the stock.
Source: xStation5
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