DAX (DAX 40) continued its stabilization on Friday, following a positive trend set by Wall Street. Midday saw the leading German index slightly up by 0.11% at 16730 points, buoyed by the US stock markets' noticeable rise in late trading the previous day. Despite a recent rally at the end of 2023, fading hopes for imminent interest rate cuts had previously slowed the DAX's momentum. After three consecutive days of losses, the DAX saw a slight recovery on Thursday, although it remains around 400 points below its December record of about 17,000 points.
DAX price is supported by a good session on Wall Street. Today, the index has gained a modest 0.12%. However, this was enough to return above the support zone we wrote about yesterday. Currently, the bulls are facing the intersection of the 50-session and 200-session SMA averages.
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Source: xStation 5.
Business Highlights:
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The German Farmers' Association wants to demonstrate against the planned subsidy cuts for agricultural diesel with smaller actions next week. "Our farmers are disappointed that they have not been heard," said association president Joachim Rukwied on Friday at the Green Week, referring to the decisions of the Bundestag's budget committee.
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Finance Minister Christian Lindner and European Central Bank President Christine Lagarde emphasized the importance of a strong Europe in response to the potential re-election of Donald Trump in the USA. Speaking at the World Economic Forum in Davos, Lindner highlighted the need for European competitiveness and equality with the US in economic and NATO matters.
Company News:
Christian Sewing, the head of Deutsche Bank (DBK.DE), has expressed a lack of immediate interest in merging with other larger financial institutions. Speaking at the World Economic Forum in Davos, Sewing acknowledged the inevitability of mergers and acquisitions in the European banking sector but emphasized that certain conditions, including the completion of the European banking union, must be met first. Despite recent internal discussions at Deutsche Bank about potential takeovers, including European banks like Commerzbank and ABN Amro, Sewing indicated that the current rise in interest rates could complicate such mergers due to valuation gaps in mortgage books.
The Austrian Federal Railways has confirmed an order for 70 Mireo multiple units from Siemens (ENR.DE), as part of a framework agreement made last summer. This order, valued at over 800 million euros, is for electric trains to be delivered starting from the end of 2027. The agreement encompasses a total of 540 electric multiple units.
Deutz (DEZ.DE) - engine manufacturer, is gaining almost 6.00% following the announcement that the company has sold its boat engine subsidiary to Yamaha Motor Co., a Japanese supplier. The sale, announced by the Cologne-based company, is expected to fetch a price in the higher double-digit million euro range. This strategic move, aimed at focusing more on classic engines and their existing service business, is anticipated to be finalized by the end of the first quarter.
Source: xStation 5
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