- DE40 gains at the beginning of the week
- Israel-Iran tensions don't cause panic in markets
- Morgan Stanley upgrades recommendation for Adidas shares
General market situation:
This week's first trading session on the markets of the Old Continent is marked by bullish attitude. The DAX gains more than 1.4%, the Euro Stoxx gains 1.2% and the CAC40 adds 1.05%. The intraday gains are largely a failure to realize the scary scenario resulting from the escalation of the geopolitical situation on the Israel-Iran line. The key reading of the day will be retail sales data scheduled for 1:30 pm BST.
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European companies listed during Monday's trading session are mostly on the rise at the moment. Source: xStation 5
Germany's benchmark DE40 is recording 1.4% gains during today's session, thus rebounding from a key uptrend support zone located near 18,155 points. This level is now an important control level for the quotations in the medium term. Source: xStation 5
News:
Adidas (ADS.DE) 's shares are gaining nearly 3.5% during today's session due to a raised recommendation on the company's shares by Morgan Stanley. The investment bank rated the company's shares as "overweight." The target price was raised to 235 euros against 175 euros. A more favorable backdrop in the sports industry and improved marketing efforts are considered by MS as the main factors that could improve revenue momentum in the near term.
The continuing uncertainty in the Middle East, which led to Iran's armed attack on Israel before the weekend, is supporting the valuations of defense companies. Rheinmeatall (RHM.DE) shares are currently gaining 1.36%, BAE Systems (BA.UK) shares are adding 1.78%, and Airbus (AIR.DE) shares are up 1.15%.
Despite geopolitical uncertainty, oil companies are also performing poorly. BP (BP.UK) shares lose 2.2%, and Shell (SHEL.NL) loses 1.6%. The declines are primarily due to a pullback in the Brent and WTI markets.
Source: xStation
Other news about individual companies included in the DAX index.Source: Bloomberg Financial LP
Analyst recommendations:
- AlphaValue/Baader lowered its recommendation for Merck KGaA (MRK.DE) to "hold" from "buy."
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