- Germany's DAX remains in the zone of record highs
- UniCredit's acquisition of CommerzbankĀ in focus
- Change of recommendation for Zalando and Hugo Boss
General market situation:
Monday's session on European stock markets brings relatively good investor sentiment. Germany's DAX is currently gaining 0.51%. Britain's FTSE 100 is losing 0.12%. At the same time, France's CAC40 is losing 0.24%. The DAX as a whole remains above the key support point set by the 50-day EMA and is oscillating in the region of historical highs. Investors' attention today turns to PMI data, corporate news regarding Commerzbank and UniCredit, as well as changes in recommendations for Hugo Boss and Zalando shares.Ā
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Volatility seen today in the broad European market. Source: xStationĀ
The German benchmark DE40 is trading nearly 0.36% higher during Monday's session. The futures-based index continues to hold in the zone of historical highs and above the important support level set by the 50-day EMA (blue curve on the chart, which may technically sustain the overall uptrend on the index. Ā Source: xStation
News:
A huge spike in market volatility is seen today on shares of Commerzbank (CBK.DE), where the issue of Italian UniCredit (UCG.IT) taking a stake in the German bank remains in question. The German government has said it will keep its 12% stake in the German bank for the time being, which is likely to put the merger with Italy's UniCredit on hold, with UCG also giving notice today that it has increased its stake in the German bank to around 21% and has applied to increase its stake to 29.9%. UniCredit's shares are losing more than 2.5% today.
Commerzbank's shares are reversing early declines by now gaining more than 0.2% intraday.Ā
On the other hand, UniCredit shares deepen losses to 2.5% after the German government's announcement to block the takeover of Commerzbank.Ā
Zalando (ZAL.DE) shares are in demand, gaining 1.4%, after analysts at RBC raised their target price on the company's stock to ā¬42 (from the current price of ā¬27.4).Ā
Hugo Boss (BOSS.DE) is losing more than 3.3%, as Bank of America changed its buy recommendation on the company to negative. In a sector survey, the bank's expert expressed general skepticism toward the luxury goods stock. What's more, the company reported weak sales figures for fiscal 2023, with profits from its UK operations nearly halving in 2023. Pre-tax profits fell to Ā£16.8 million, down from Ā£30.4 million in 2022, according to recently filed financial statements. Turnover for the year also fell, from Ā£402.4 million in 2022 to Ā£391.6 million in 2023.
Other news coming out of individual DAX index companies. Source: Bloomberg Financial LP
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