- German DAX gains during Tuesday's session
- A series of revisions in the automotive sector
- Singapore accepts Bavarian Nordic's Mpox vaccines
- Santander with a share buyback plan
Overall market situation:
Tuesday's session on European stock markets is slightly better. The German DAX is currently gaining 0.23% intraday. At the same time, the French CAC40 is adding 0.04%. On the corporate side, there is a lot going on in the automotive and intermediate sectors. The macro calendar does not foresee a large number of macro releases that could significantly affect the triggering of market volatility.
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Volatility currently observed on the broad European market. Source: xStation
The German DE40 benchmark is trading close to 0.1% higher during Tuesday's session and is still maintaining a dynamic upward trend. The index broke above the key resistance level set by the 50-day EMA (blue line on the chart) and the local peaks of the consolidation zone from the last few sessions. A dynamic breakout of these zones could theoretically open the way for further increases towards the historical peaks at 19,000 points. On the other hand, it is worth bearing in mind that the scale of the recent rebound is large, which could lead to investors booking some profits. In this respect, the previously mentioned 50-day EMA and 100-day EMA (purple line on the chart) could be a relatively important support zone. Source: xStation
News:
Today's session on the German stock exchange brings a jump in the quotations of companies from the automotive sector and intermediate industries.
Continental (CON.DE) shares are gaining over 4% after UBS bank raised its recommendation for the company's shares to a "buy" rating from the previous "neutral". The target price has been raised to €80 from €67 previously. The increase was primarily due to Continental's plans to spin off its automotive division (NewCo).
According to the bank, the spin-off will likely allow the company to leverage its strengths in the tire business and optimize capital allocation, which could result in significant returns for shareholders.
On the other hand, Daimler Truck (DTG.DE) is trading under downward pressure. US investment bank Goldman Sachs has downgraded Daimler Truck from "Buy" to "Neutral" and lowered the target price from €46 to €39.
There has also been talk of a planned production alliance between Toyota (TM.US) and BMW (BMW.DE). The idea is to produce fuel cell vehicles, which are more affordable in the face of the slowdown in the EV market.
In other markets, investors' attention is focused on Bavarian Nordic (BAVA.DK) shares, where we are seeing almost 4% increases in connection with the information about the acceptance of the company's Mpox vaccines in Singapore.
We are also seeing almost 2.5% increases in Santander Bank (SAN1.ES), where a share buyback plan of up to 1.53 billion shares was announced.
Other news from individual DAX companies. Source: Bloomberg Financial LP
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