DE40: DAX Approaches All-Time High as Bulls Attempt to Regain Momentum

11:27 am 16 May 2025

  • Deutsche Bank shares rose after CEO Christian Sewing announced plans for a second share buyback in 2025

  • Allianz shares climbed after reaffirming 2025 earnings guidance

  • Bayer shares trend down as the company pursues a dual-track approach to resolve Roundup litigation

 

European markets are showing mixed performance today, with a majority of indices trading in positive territory despite weakness in some major markets. Switzerland's SUI20 leads the gains with a strong 1.01% rise to 12334, while Germany's DE40 follows with a 0.57% increase to 23931.3.

Poland's W20 is also performing well, up 0.50% to 2836.6, and Italy's ITA40 has gained 0.40% to reach 40074. Spain's SPA35 continues its positive momentum, rising 0.34% to 14001, while the pan-European EU50 index is up 0.32% to 5427.6.

Austria's AUT20 has increased by 0.23% to 4309, and the UK's UK100 shows a modest gain of 0.20% to 8675.5. The Netherlands' NED25 is up slightly by 0.16% to 931.55.

Only two markets are trading in negative territory: France's FRA40 has declined by 0.26% to 7841.7, while the VSTOXX volatility index shows the largest drop, falling 0.54% to 18.43.

Today's broadly positive trading session suggests renewed investor confidence in European markets, marking a shift from yesterday's more cautious sentiment.

Volatility is currently observed in the broader European market. Source: xStation

 

The German DE40 Index is gaining modestly and approaching new all-time high yesterday, yet it remains above the 23.6% Fibonacci retracement level and the 50-day SMA—both acting as key support zones. Bulls will look to maintain momentum above recent highs to confirm the breakout, while bears may attempt to drive the index below those levels, with the 50-day SMA as a near-term target. The RSI is easing just below overbought territory, indicating a potential cooldown in bullish momentum. Meanwhile, the MACD is beginning to narrow, signaling caution as buying pressure may be losing steam. Source: xStation

 

Market News

  • Deutsche Bank shares rose 3.5% after CEO Christian Sewing announced plans for a second share buyback in 2025, adding to the €750 million program already underway; the bank maintains a strong capital position with 13.8% CET1 ratio and targets cumulative shareholder returns exceeding €8 billion for 2022-26 period.

  • Allianz shares climbed 2.8% after reaffirming 2025 earnings guidance, with stock gaining 6.54% over the last quarter amid share buyback plans and M&A discussions; the company projects earnings to reach €12.1 billion by May 2028 and has delivered a five-year total return of 186.28%, outperforming the broader German market.

  • Bayer shares closed down 1.2% as the company pursues a dual-track approach to resolve Roundup litigation, developing a settlement plan through Missouri courts while preparing for a possible Monsanto bankruptcy filing; the company faces 67,000 lawsuits since its $63 billion Monsanto acquisition in 2018, with agriculture head Santos committed to resolving litigation within 12-18 months.

 

Other news coming from individual DAX index companies. Source: Bloomberg Financial LP

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