- German DAX on track to end losing streak
- UniCredit has significantly increased its stake in Commerzbank to approximately 28%, comprising 9.5% direct ownership and 18.5% through derivatives.
- Deutsche Bank is developing Project Dama 2, an innovative platform aimed at addressing regulatory challenges in public blockchain usage.
General market situation: European markets are showing mixed performance today, with the UK's UK100 leading gains (+0.27%), followed by the Dutch NED25 (+0.23%) and French FRA40 (+0.15%). The Polish W20 and German DE40 are up +0.14% and +0.09% respectively, while the pan-European EU50 and Italian ITA40 both gained +0.08%. The Spanish SPA35 (-0.05%), Swiss SUI20 (-0.25%), and Austrian AUT20 (-0.28%) are in negative territory.
Dax Returns by Sector. Source: Bloomberg Financial LP
Looking at the German DAX sector performance, the market shows a mixed picture with six sectors posting gains and five declining. Information Technology leads the advances (+0.51%), followed by Financials (+0.39%) and Consumer Discretionary (+0.28%). Industrials (+0.14%), Utilities (+0.08%), show modest gains. On the negative side, Health Care (-0.05%), Communication Services (-0.17%), Real Estate (-0.20%), Consumer Staples (-0.58%), and Materials (-0.64%) are declining. The aggregate DAX performance shows a gain of +0.25%, with market breadth indicating a mixed trading session despite the majority of sectors showing positive returns.
Volatility is currently observed in the broader European market. Source: xStation
The German DE40 Index is trading below its all-time high, with momentum indicators signaling potential caution. The RSI has exited the overbought zone and is trending downward, suggesting waning bullish momentum. Additionally, the MACD has formed a bearish crossover, further pointing to a possible shift in sentiment. For bears, reclaiming control requires a retest of the October high at 19,783. 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 start of bearish divergence. Source: xStation
Corporate News
- Mercedes-Benz (MBG.DE) has dropped ESG labels from an €11 billion revolving credit facility, moving away from sustainability-linked loans despite maintaining its sustainability commitments. This shift comes as the luxury automaker faces challenges in meeting electric vehicle targets amid slowing EV demand, with the company expecting car sales to fall below 2023's 2.04 million units.
- UniCredit (UCG.IT) has significantly increased its stake in Commerzbank (CBK.DE) to approximately 28%, comprising 9.5% direct ownership and 18.5% through derivatives. The move sparked a 4.3% rise in Commerzbank shares, though UniCredit emphasizes this remains purely an investment and won't affect its ongoing Banco BPM takeover bid. The German government has expressed opposition to a potential UniCredit takeover of Commerzbank.
- Rejlers and E.ON (EOAN.DE) have established a three-year framework agreement to collaborate on technical consulting services and sustainable energy solutions. The partnership aims to support E.ON's goal of achieving 100% renewable and recycled energy by 2025, with Rejlers providing expertise in areas including project management, electric power, and HSE.
- Deutsche Bank (DBK.DE) is developing Project Dama 2, an innovative platform aimed at addressing regulatory challenges in public blockchain usage. The system includes a Layer 2 solution connected to Ethereum, designed to provide regulated banks with better control over transaction validation and regulatory compliance. The bank plans to launch a minimum viable product next year, pending regulatory approval.
Other news coming from individual DAX index companies. Source: Bloomberg Financial LP
Daily summary: Wall Street tries to rebound 📈Amazon and Microsoft under pressure of Rotschild & Co Redburn
Home Depot shares slide 4% on outlook cut citing weakening consumption 📉
📌US500 loses 1%
US Open: Wall Street indices under continued selling pressure 📌Technology stocks slide
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