- German DAX trades lower today
- Commerzbank AG shares could surge up to 35% to €21 ($22.7) per share if UniCredit proceeds with a takeover bid, according to KBW analysts.
- E.On SE Posts In-Line Results
General market situation: European markets are trading lower across the board, with the Polish W20 showing the steepest decline at -1.09%. The German DE40 is down -0.56%, followed by the Italian ITA40 (-0.55%) and the broader EU50 (-0.54%). The French FRA40 is declining by -0.42%, while the Dutch NED25 and Austrian AUT20 show more modest losses of -0.19% and -0.17% respectively. The Swiss SUI20 (-0.15%), UK's UK100 (-0.09%), and Spanish SPA35 (-0.05%) are showing the smallest declines among European indices.
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Dax Returns by Sector. Source: Bloomberg Financial LP
The German DAX sector performance shows a mixed picture, with Financials (+0.11%) and Information Technology (+0.03%) being the only sectors in positive territory. Real Estate is the worst performer with a significant decline of -1.73%, followed by Consumer Staples and Health Care (both -0.80%). Industrials (-0.36%) and Communication Services (-0.31%) show moderate losses, while Consumer Discretionary (-0.01%), Utilities (-0.04%), and Materials (-0.07%) demonstrate more resilient performance. The overall market breadth remains negative, with 8 out of 10 sectors trading lower, indicating broad-based selling pressure across the German equity market.
Volatility is currently observed in the broader European market. Source: xStation
The German DE40 Index is trading at the 38.2% Fibonacci retracement level but below the 50-day SMA. For bears, the 50% Fibonacci retracement level is the first test, having previously acted as support. If breached, the 100-day SMA and 61.8% Fibonacci retracement level could be retested. For bulls, key resistance lies at the 23.6% Fibonacci retracement level. RSI shows bearish divergence with lower highs and lows, while MACD indicates negative sentiment. Source: xStation
News
- Deutsche Bank AG (DBK.DE) CEO Christian Sewing has called for European regulatory response to softened U.S. Basel III implementation. Speaking at Euro Finance Week in Frankfurt, Sewing emphasized that while 80% of post-financial crisis regulations were appropriate, Europe must address the weakened U.S. standards. The CEO suggested considering regulatory moratoriums as part of a broader review to maintain competitive balance.
- Commerzbank AG (CBK.DE) shares could surge up to 35% to €21 ($22.7) per share if UniCredit proceeds with a takeover bid, according to KBW analysts. The stock has already gained 26% since September when UniCredit's interest first emerged. However, the German government's 12% stake could complicate the acquisition, with both Commerzbank management and government officials opposing the deal. A final decision is expected after Commerzbank's February 13 capital markets day and German federal elections.
- E.On SE (EOAN.DE) reported nine-month adjusted EBITDA of €6.69 billion, down 14% year-over-year, while maintaining its full-year guidance of €8.8-9.0 billion. The utility increased investments by 20% to €4.7 billion, focusing on infrastructure development. The company has secured 75% of its 2024 external financing through green bonds and expanded 2025 pre-financing. Analysts remain neutral, with Morgan Stanley noting derisked guidance but limited upside potential, while Jefferies attributes lower retail EBITDA to prior year one-offs and milder temperatures.
Other news coming from individual DAX index companies. Source: Bloomberg Financial LP
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