- German DAX continues losing streak
- Deutsche Bank has injected approximately €310 million into Deutsche Bank Polska, primarily to address ongoing litigation regarding FX mortgages.
- JPMorgan maintains its Overweight rating on adidas (PT €266) and positive catalyst watch
- Siemens shares are experiencing downward pressure in trading, with no apparent company-specific news driving the movement, despite the company hosting an analyst and institutional investors meeting today.
General market situation: European markets are trading lower across the board, with the Swiss SUI20 showing the steepest decline (-1.10%), followed by the Spanish SPA35 (-0.89%) and French FRA40 (-0.76%). The pan-European EU50 is down 0.49%, while the Italian ITA40 and Austrian AUT20 both declined 0.48%. The Dutch NED25 (-0.28%), UK's UK100 (-0.26%), and German DE40 (-0.15%) show more modest losses. The Polish W20 is the only index in positive territory, up 0.50%.
Dax Returns by Sector. Source: Bloomberg Financial LP
Looking at the German DAX sector performance, all sectors are trading in negative territory except Real Estate, which posts a modest gain of 0.17%. Financials shows the steepest decline (-1.28%), followed by Materials (-1.12%) and Information Technology (-1.00%). Communication Services (-0.82%), Health Care (-0.56%), Consumer Discretionary (-0.69%), and Consumer Staples (-0.38%) are also down significantly. Industrials (-0.52%) and Utilities (-0.94%) round out the declining sectors. The aggregate DAX performance shows a decline of 0.67%, with market breadth decidedly negative as nearly all sectors trade lower.
Volatility is currently observed in the broader European market. Source: xStation
The German DE40 Index is continuing its downtrend. The RSI has cooled down and is currently consolidating in the neutral zone. Additionally, the MACD, after forming a bearish crossover, is widening to the downside.
For bears, a retest of the October high at 19,783 could accelerate the downward momentum. A decisive break below this level could lead to a retest of the early November high at 19,525, which aligns closely with the 50-day SMA at 19,653, establishing a critical support zone.
For bulls, the 161.8% Fibonacci retracement level at 20,566 remains the key resistance. This level has played a pivotal role in recent sessions and could act as either a springboard for further bullish advances or a threshold marking the onset of bearish divergence. Source: xStation
Corporate News
- Nike's Results Impact Adidas (ADS.DE) Outlook - JPMorgan maintains its Overweight rating on adidas (PT €266) and positive catalyst watch, viewing the company as well-positioned to capitalize on Nike's ongoing market weakness following Nike's disappointing third-quarter sales guidance. While Nike's results cast a shadow over the broader European sportswear sector, potentially affecting retailers like JD Sports (neutral, PT 105p) and Puma, JPMorgan analysts see adidas as a potential beneficiary of the competitive landscape shift. Nike's disclosure of improving trends, with sales declines moderating in November compared to October, suggests some stabilization in the broader sportswear market, though the impact varies across companies and regions.
- UniCredit (UCG.IT) has increased its total voting rights in Commerzbank (CBK.DE) to 24.63% as of December 16, up from 21.21%. The position consists of 9.49% in direct voting rights and 15.13% through instruments. Trading activity in Commerzbank shares has been notably high, with Morgan Stanley, BNP Paribas, and Merrill Lynch emerging as the most active brokers between November 20 and December 19, while the stock has declined 2% over the past month with an average share price of €15.02.
- Deutsche Bank (DBK.DE) has injected approximately €310 million into Deutsche Bank Polska, primarily to address ongoing litigation regarding FX mortgages. The capital increase, which was previously guided for the fourth quarter as part of the bank's strategy to resolve legacy litigation issues, is not expected to impact the bank's projected strong operating performance or its capital and leverage ratios.
- Siemens (SIE.DE) shares are experiencing downward pressure in trading, with no apparent company-specific news driving the movement, despite the company hosting an analyst and institutional investors meeting today.
Other news coming from individual DAX index companies. Source: Bloomberg Financial LP
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