- DAX loses at the beginning of the week
- Revision of bank recommendations for BASF, Munich Re and Infineon
- BMW AG recalls nearly 700,000 vehicles in China due to coolant pump defects
General market situation:
The first session in European stock markets this week brings declines in most stock indexes. Germany's DAX is currently losing 0.9%. Britain's FTSE 100 is losing more than 0.25% at the same time. The French CAC40, meanwhile, is losing 0.6%. Investor attention today turns to corporate news and speeches by Fed bankers.
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Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is trading nearly 0.9% lower during Monday's session. The key support/resistance points of the broad uptrend appear to remain the 19,000-point zone, the 50-day EMA (blue curve on the chart) and the historical peak tested last week, which now serves as the main control zone for the supply and demand sides. Source: xStation
News:
Munich Re (MUV2.DE) shares are losing more than 2.2% in today's session, after Jefferies downgraded the company to “hold” from “buy.” Jefferies analysts point out that the stock's 35 percent year-to-date gain through Friday has resulted in a limited risk premium for Munich Re shares. The new target price at €485, previously was €495.
Infineon (IFX.DE) was downgraded to a “neutral” rating from previously “overwieght” at Morgan Stanley, highlighting growing challenges in the automotive sector for the German chipmaker. The bank's analyst expects an 11% decline in the auto segment for fiscal 2025. Expectations for autos seem too high and the bank expects the company to provide guidance below consensus expectations in November. The new target price is €30, previously it was €37.
Banco Sabadell downgraded its recommendation on BASF (BAS.DE) shares to an “underweight” rating from its previous “overweight” rating. Target price at €50.
BMW AG (BMW.DE) will recall nearly 700,000 vehicles in China due to defects in its coolant pump. The company's shares are down 0.5% today.
The shares of Italy's Eni (ENI.IT) are gaining nearly 1.5% in today's session after the company hired Natixis bank to seek an investor interested in taking a minority stake in Enibioch4in Spa, a biomethane company.
Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP
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