- DAX gains during Thursday's session
- Evotec benefits from takeover possibility rumours
- Central bank decisions in the background
Overall market situation:
Thursday's session on the German trading floor saw gains in the DAX index of nearly 0.5%. The session on the Old Continent is overly optimistic today. Alongside the gains in Germany, the French CAC40 is up by almost 1% and the British FTSE 100 is up by 0.4%. Investors' attention has turned today to the SNB and BoE decisions. In the German market, the company that is attracting most investor attention is Evotec.
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Volatility currently observed in the DAX index. Source: Bloomberg Financial LP
Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is recording close to 0.4% patterns 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).
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:
Stifel downgraded its recommendation on Lufthansa (LHA.DE) shares to a "hold" rating. Target price at € 7 per share. The shares are losing 3.7% today.
German drugmaker Evotec SE (EVT.DE) is in talks with advisers after a fall in its share price raised concerns about the company's vulnerability to a takeover, said people with knowledge of the matter. The same sources said that a number of buyout firms are considering Hamburg-based Evotec as a potential target, asking to remain anonymous due to the private nature of the information. The company's shares are gaining more than 13.5% today.
The shares of French company Thales (HO.FR) are gaining nearly 2% today after Oddo BHF upgraded the company's shares to an "outperform" rating with a target price of €195 per share.
Close to 5% gains are being recorded today on the shares of ASM International (ASM.NL). Morgan Stanley raised its rating on the company's shares to 'outperform' due to the potential for AI technology development.
Other news coming out of individual companies on the DAX index. Source: Bloomberg Financial LP
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