- European markets gain during Thursday's session
- ECB minutes, US PPI report and Powell/Lagarde speeches in focus
- Management changes and relatively strong results drive Burberry shares
- Italian government resumes privatization of world's oldest bank
Sentiment in the German stock market is improving and an attempt to negate recent declines is now evident. Increases are seen in most markets, with slight declines seen only in the metals sector. Investors' attention turns today to ECB Minutes and PPI data from the US. The trading day, meanwhile, will be summed up by speeches by Powell and Lagarde.
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Create account Try a demo Download mobile app Download mobile appSentiment in the European stock market is good today. Slightly larger declines are seen today only in the metals sector. Source: xStation5
Among the companies in the DAX index, the biggest increases are currently seen in the stocks of Siemens and Deutsche Telekom. On the other hand, nearly 2% declines are seen on Zalando and Merck shares. Source: Bloomberg Finance L.P.
DE40 (D1 interval)
The DAX broke below the 50-day exponential moving average (blue curve on the chart) and tested another important support point, which is the 100-day EMA (purple curve on the chart). From a technical point of view, the DE40 seems to maintain its overall uptrend until the previously mentioned 100-day curve is broken on high volume, so it is worth looking now to see if the index manages to stay above this zone permanently, and if it manages to close today's trade above the 50-day EMA. If such a scenario were to take place, it could mean an increase in the chances of a general continuation of the upward trend. On the other hand, staying between the previously mentioned exponentials could encourage the bearish side to break them and initiate a deeper downward correction.
Source: xStation5
News from companies
Shares of SMA Solar (S92.DE) are losing 14% during today's session after the company reported low earnings for the last nine months. Profit came in at 34.7 million euros, down 81% on a year-over-year basis. Sentiment on the company is further dampened by fears of a shift away from green energy in the face of a return to conventional energy sources after Trump's win.
Burberry (BRBY.UK) reported first-half comparable retail sales that beat the average analyst forecast. Better financial data and management changes are driving the company's stock price today, which is currently up 17%.
- Comparable retail sales -20% vs. +10% y/y, estimated -21.2%
- Revenue £1.09 billion, -22% y/y, estimated £1.08 billion
The shares of Monte Paschi Di Siena (BMPS.IT), the world's oldest operating bank, are gaining more than 13% today as the next phase of the bank's privatization is completed.The Italian Treasury placed the shares at €5.792 apiece under an accelerated bookbuilding procedure, a 5% premium to Wednesday's closing price. Once settled, the sale will reduce Italy's stake in MPS from 26.7% to 11.7%.
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