Today's stock market session in Europe is unfolding in moderately positive moods – most major indices are recording gains, and investors are benefiting from improved sentiment in global markets. The German DAX is following this trend, recording increases and aligning with the general direction of European exchanges.
Source: Bloomberg Finance LP
German indices are primarily driven upwards by companies in the medical, mining, renewable energy, and IT sectors. On the other hand, banks and retailers are exerting pressure on quotations – these segments remain in retreat due to concerns about declining consumption and potential regulatory challenges in the financial sector.
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Macroeconomic Data:
Spanish Retail Sales:
- Actual: 4.5% YoY
- Previous: 4.7% YoY
Spanish Consumer Price Index (CPI):
- Actual: -0.4% MoM
- Forecast: -0.2% MoM
- Previous: 0.0% MoM
In Spain, today's inflation reading attracted attention, which turned out to be negative and worse than forecasts, raising concerns about the condition of the local economy and the risk of deepening deflation. On the other hand, retail sales data stood out positively, indicating an improvement in consumer demand, partially offsetting the pessimistic inflation picture.
Eurozone Economic Sentiment (September):
-
Economic Sentiment: 95.5 (Expected: 95.2. Previous: 95.2)
-
Consumer Sentiment: -14.9 (Expected: -14.9. Previous: -15.5)
-
Industrial Sentiment: -10.3 (Expected: -10.9. Previous: -10.3)
-
Services Sentiment: 3.6 (Expected: 3.7. Previous: 3.6)
Data from the eurozone had a moderately positive tone. In most segments of the economy, results turned out better than expected, supporting the image of economic stabilization. However, it is worth remembering that the trend in the data is still negative. Particular concerns are raised by the sector and consumers. Indicators fell below forecasts, suggesting that pressure to slow down activity in this area is still evident.
The further course of the session may also be influenced by statements from FOMC and ECB representatives, which will be carefully analyzed for clues regarding the direction of monetary policy.
DE40 (D1)
Source:xStation5
After bouncing off strong support at the FIBO 38.2 level, where EMA100 also runs, the price is heading towards the upper limit of consolidation at around 24,000 points, where the FIBO 23.6 level is also located. Breaking this level may signal further increases. However, returning to levels around 23,650 and breaking EMA100 may herald an attempt to test the lower boundary running at 23,300 points, where FIBO 50 is additionally located.
Company News:
Lufthansa (LHA.DE) - The airline announced the layoff of 4,000 employees to protect margins. The stock price is rising by about 1.6%.
Kloeckner (KCO.DE) - The steel producer announced it will sell its plants in the USA. The company gains over 3.5%.
Another day of growth for defense companies - Rolls-Royce (RR.UK), Rheinmetall (RHM.DE), and Hensoldt (HAD.DE) are rising by over 1% amid increasing orders and geopolitical tensions.
NIBE Industrier (NIBEB.SE) - The renewable energy company received a series of recommendations from investment banks. The stock price is rising by 6%.
UCB (UCB.BE) - The Belgian biotech company is rising by over 15% after announcing very promising research results regarding their new therapy.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
