- Dax gains 0.4% at the end of the first half of Tuesday's session
- German research institute ZEW published its latest economic sentiment index at 10am BST
- The actual data were disappointing - the expectations index improved only slightly compared to May, while the current situation index worsened
Overall market situation:
Tuesday's session on the German trading floor saw gains in the DAX index, reaching almost 0.4%. Although the start of the session on the Old Continent was not overly optimistic, the situation has now improved considerably in most markets. Investors' attention turns today towards the ZEW data from Germany and the expected US retail sales data. On the corporate side, there is a lot going on today in the shares of Hugo Boss, Symrise and Siemens.
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Volatility seen today in the DAX index. Source: Bloomberg Financial LP
Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is down nearly 0.1% during today's session. The index continues to hold the structure of the downtrend initiated on 16 May. The continuation of the downward trend led to a test of the historically important support level in the zone of the 100-day exponential moving average (purple curve on the chart, it still remains a key support point). Locally, the most important resistance all the time remains the zone of the 50-day exponential moving average (blue curve).
Interestingly, the test of the zones of the aforementioned 100-day EMA brought a clear activation on the volume side. This may indicate that we have seen a lot of institutional investor activation in this zone. Source: xStation 5
News:
Jefferies raised its target price for Siemens (SIE.DE) from €225 to €230 and left its rating at 'Buy'. The firm's analyst expects Siemens to continue to enjoy structurally attractive growth for many years to come and sees its shares as favourably valued compared to the sector.
Simrise (SY1.DE) has been granted Positive Catalyst Watch status by JPMorgan ahead of the release of its second quarter figures. The bank analyst thus expresses its expectation of a more vigorous sales recovery and further margin expansion. The expert raised the target price from €120 to €130 and left the rating at 'Overweight'. The company's shares are up 0.5% today.
The Hugo Boss (BOSS.DE) is gaining more than 2 per cent today as Michael Ashley, founder and major shareholder of the British retail group Frasers Group, increased his ownership stake in the company.
Other news coming out of individual DAX index companies. Source: Bloomberg Financial LP
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