- Europe under pressure from yesterday's AI sector sell-off
- Canadian CPI data in focus
- Airbus cuts full-year earnings forecasts
Overall market situation:
Tuesday's session on European stock markets is marked by declines. The German DAX is currently losing nearly 1.1% on the spot market. At the same time, the French CAC40 is losing 0.75% and the UK FTSE 100 is down 0.25%. By contrast, the leader of the gains in Europe is the Polish WIG20, which is adding 0.35%. Investors are looking with uncertainty at the weakness in the semiconductor sector, which has pushed Nvidia nearly 16% away from historic highs.
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Volatility currently seen 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 0.35% during today's session. The index is still in 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). The DE40 index is currently testing this zone.
Interestingly, the test of the zones of the previously mentioned 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:
BASF SE (BAS.DE) and Eramet SA (ERA.FR) abandoned plans to spend up to $2.6 billion to build a nickel-cobalt refinery in Indonesia after a slowdown in electric vehicle sales. The global availability of battery-quality nickel has improved since the project's inception, BASF said in a statement on Monday.
Baader Helvea raised its recommendation on shares of Wacker Chemie (WCH.DE) to a 'buy' rating from its previous 'reduce' rating with a target price of €122.
Missing Airbus (AIR.FR) parts are forcing a reduction in targets against accelerating A320 production. The company has also reduced its full-year profit and free cash flow forecasts. The company's shares are losing nearly 12% today.
Suppliers of parts to aircraft manufacturers are trading down on Tuesday following this news. Rolls Royce loses -3.3%, Safran -3.5%, Leonardo -3.8%, Sopra Steria -1.5%, Alten -1.1% and Capgemini -0.3%.
Evotec Biologics, a subsidiary of Evotec (EVT.DE), was selected by the US Department of Defense for its biotherapeutics manufacturing optimisation programme.
Merck KGaA (MRK.DE) shares lose 11% after the German pharmaceutical and chemical company discontinued research into Xevinapant for the treatment of head and neck cancer. Analysts questioned the company's growth prospects in healthcare and its R&D strategy after the incident.
Other news coming out of individual DAX index companies. Source: Bloomberg Financial LP
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