- European Indexes open with little change
- DAX gains 0.24%
- Siemens Energy rises by 4.30%, the most among the companies in the index
The start of the new week begins with little change. After last week's gains, indexes are consolidating around the peaks. Most European indexes limit returns to the range of +/-0.40%. The leader of the gains is the Austrian ATX (AUT20), which is up nearly 0.60%, followed by the Italian FTSE MIB (ITA40) gaining 0.35%. The German DAX is also trading higher by 0.25% at 17,070 points. Today's macro calendar is quite light, so volatility should not increase significantly in the second part of the day. On the forex market, the situation looks similar, with the euro limiting changes to +/-0.20% against the G10 currencies.
DE40
Despite modest gains on the DAX, the index is trading around historical highs at the level of 17,100 points. In the case of a deeper correction, it is worth observing the levels of 16,500 and 16,300, which are the nearest support zones.
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Source: xStation 5
Germany Top Highlights
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Union parliamentary group vice-president Jens Spahn and economic policy spokeswoman Julia Klöckner said in a letter to Economics Minister Robert Habeck that Germany as a business location is losing more and more of its competitiveness.
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They submitted to Habeck the possible short-term measures that, from the Union's perspective, are necessary in addition to medium and long-term measures to strengthen competitiveness. This includes, for example, limiting social security contributions to a maximum of 40% of gross wages, giving tax advantages to overtime for full-time employees and making the first 2,000 euros of income per year tax-free for pensioners.
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The European Central Bank (ECB) is planning to increase its scrutiny of credit risks associated with commercial real estate. According to a Bloomberg report citing knowledgeable sources, the ECB is indicating to banks that they may face higher capital requirements if they fail to adequately manage risks from commercial real estate.
Company News
Siemens Energy (ENR.DE) is gaining more than 4.00% today and is the most gaining company on the DAX index. Siemens is making up for initial declines following the release of its quarterly report in the middle of last week.
Source: xStation 5
Rheinmetall (RHM.DE) is also among the top gainers, raising about 2.70%. The automotive and arms manufacturer is in the process of significantly expanding its production of artillery shells. The company also reiterated its ambition to double sales to 20 billion euros in seven to eight years, as boss Armin Papperger told the “Handelsblatt” in an interview.
Nordex (NDX1.DE) is gaining over 7.00% following the solid earnings report. A wind turbine manufacturer, returned to profitability, achieving a small operating profit (EBITDA) of 2.0 million euros, reaching break-even on a full-year basis, in contrast to the previous year's EBITDA loss of 244 million euros. The company's sales rose to nearly 6.5 billion euros, surpassing the upper end of the expected range of 5.6 to 6.1 billion euros.
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