Summary:
- European Parliament to vote on the candidacy of Ursula von der Leyen today
- DAX (DE30) trades a notch below the 12400 pts handle
- Deutsche Bank (DBK.DE) reaffirmed at BBB+ at S&P
Stock market indices from the Western Europe are trading higher on Tuesday morning. Shares from the United Kingdom and Belgium advance the most while equities from Russia and Sweden can be found among the biggest laggards. Healthcare stocks lead higher while carmakers and real estate companies underperform the most.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
DE30 tries to definitely snap a losing streak and add to yesterday’s gains. The index is trading in the vicinity of the 33-period moving average (H4 interval) and slightly below the 12520 pts handle marked by peak from 20 June 2019. Note that in case declines do not deepen structure of higher lows will be intact and thus one could expect an upward move to resume. Source: xStation5
European Parliament to vote on the candidacy of Ursula von der Leyen today
The European Parliament will vote today on the candidacy of Ursula von der Leyen for the post of the European Commission chief. The ballot will be held at 5:00 pm BST. However, there is still a chance that she will fail to secure a majority of the votes. Some of the groups within the European Parliament may oppose her candidacy in a sort of revenge for rejecting their own candidates. Nevertheless, von der Leyen made a bulk of promises yesterday, including minimum EU wage and growth-oriented fiscal policy, in a bid to win their support. Results of the vote should be known around 7:00 pm BST. However, in case she fails to get backing of the European Parliament, the EU politics may be thrown into a little chaos. In such a situation the European leaders would have to come up with another candidate within a month and given how did they struggle to choose von der Leyen, it may not be an easy task.
DAX members at 9:06 am BST. Source: Bloomberg
Company News
Bayer (BAYN.DE) is one of the best performing DAX members at the beginning of Tuesday’s session. The German chemical company gains on the favourable court verdict awarded to its subsidiary, Monsanto. Court in San Francisco slashed the punitive portion of the fine in the Roundup case from $75 million to $20 million. However, the court slashed the fine because it found it miscalculated, not because it found the company any less guilty than previously. Given that Monsanto is facing hundreds or even thousands of similar cases, any ruling confirming company’s guilty risks becoming judicial precedent for other cases.
On the other hand, Daimler (DAI.DE) can be found among DAX biggest laggards. Goldman Sachs, major US investment bank, started issuing recommendations for the stock. The Bank initiated with a “sell” rating on Daimler and a price target was set at €42, implying around 10% decline against yesterday’s close.
Deutsche Bank (DBK.DE) shares are trading higher today following positive action from the S&P rating agency. S&P affirmed Deutsche Bank’s long-term rating at BBB+ with outlook remaining stable. The agency praised lender’s turnaround plans saying downsizing is “logical and necessary response to the deteriorated operating environment that the bank faces”. The agency also said it is confident that management is able to meet financial targets and projections it has set.
Deutsche Bank (DBK.DE) failed to break above the resistance zone ranging €7.10-€7.30 at the beginning of the month. The subsequent pullback was halted at the 50-session moving average (green line on the chart above). Now the stock is on the rise for another consecutive day and eyes another test of the aforementioned price zone. In case a break higher is delivered, bulls’ attention will shift to 200-session moving average (purple line). Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
