European stock indexes started trading in the new week with gains. The DAX is now up 0.4% on an intraday basis while the UK's FTSE100 is losing 0.15%. France's CAC40 is doing very well, adding 0.5% against rising valuations of major fashion companies. In the afternoon, investors will learn PMI data from the US.
Markets are also awaiting a reading of CPI data from Germany for December, due at 1:00 p.m. GMT. Data from Hesse indicated a significant acceleration in CPI pressure to 2.7% y/y versus the last reading of 2.0% y/y.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Volatility currently seen in the broader European market. Source: xStation
Germany's DE40 index has halted declines near an important support zone defined by the bumped historical peak from October this year. Moreover, this zone is oscillating around the 50-day EMA (blue curve on the chart). In the medium term, it is the reaction to these two zones that may determine whether the DE40 will maintain its overall upward trend. The most important support zone remains the historical peak at 20,500 points. Source: xStation
News
The start of the new week in the financial markets presents a positive picture. European technology companies, especially those related to the semiconductor sector, which until recently was subjected to considerable downward pressure, are particularly positive. The shares of companies such as ASML (ASML.NL) and IFX (IFX.DE) are gaining 4.8% and 5.2%, respectively.
The high-tech sector is doing very well today. Source: xStation
Similar sentiment is evident in the luxury goods sector. Hermes (RMS.FR) shares are rebounding 2.1%, while LVMH (MC.FR) shares are gaining 1.3%. The reason for the slightly better sentiment in the sector is the publication of slightly better-than-expected services PMI data from China, a key market for the sector.
Rolls-Royce (RR.UK) shares are losing nearly 3% after Citi downgraded its recommendation on the company's shares to a “neutral” rating. According to the bankers, the currently expected growth is not sufficient to justify the company's current valuation.
Volkswagen (VOW1.DE) shares gain 1.75% after the automotive giant partnered with xPeng to create a network of car chargers in China.
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.
