- Sentiment in Europe cools slightly
- DAX, however, gains 0.4% and struggles to retest historic highs
- Mercedes-Benz and Vonovia lose after dividend cut
Overall market situation:
Sentiment on the Old Continent is cooling today. Although Germany's DAX is gaining 0.4% on the cash market and trying to fight its way through record levels, the broad Euro Stoxx 50 index is losing nearly 0.3%. Investors are now waiting for the BoE's interest rate decision, which is due in 20 minutes. On the corporate side, there was not much news on German companies today.
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European companies listed during Thursday's trading session are currently trading at mixed levels. Source: xStation 5
Volatility currently observed in the DAX index. Source: Bloomberg Financial LP
Germany's benchmark DE40 is up 0.11% during today's session. What's more, the wave of growth with its range broke through the key barrier of 18,430 points, where we can see a double peak formation. Breaking through this zone could theoretically create the ground for DE40, to test the historical peaks near 18,800 points. In a slightly broader perspective, the index has been continuously moving in an uptrend since the first half of November 2023 (as evidenced by the exponential moving averages). For the moment, it seems that the most important support zone of the uptrend is the 50-day moving average (blue curve on the chart) and the previously mentioned zone of 18,430 points. Source: xStation 5
News:
Mercedes-Benz (MBG.DE) shares are losing 5.6% during today's session and are trading within the 200-day exponential moving average (gold curve on the chart below). The observed declines are due to the dividend cut today.
Source: xStation
Vonovia (VNA.DE) shares are also losing nearly 2.7% due to the dividend cutoff.
Varta (VAR1.DE) loses nearly 2% due to the first day of trading without participation in the SDax index. The company was removed from the index, as previously announced by Deutsche Börse, because it was unable to publish its audited annual financial report on time due to a hacking attack.
Other news coming out of German companies. Source: Bloomberg Financial LP
Analyst action:
- Barclays downgraded shares of Siemens Energy (ENR.DE) to “equal-weight.” Target price set at €18 per share.
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