DE30: DAX above 16,000 pt before US claims reading

• DE30 broke above 16,000 points and gains 0.36%
• Eurozone GDP revised downward
• Hapag Lloyd (HLAG.DE) shares gain after CEO comments
• German auto sector Porsche (PAH3.DE), Volkswagen (VOW1.DE), BMW (BMW.DE) and Dailmer (DTG.DE) are doing well
• Evotec (EVT.DE) gains 9% after Warburg Research upgraded its recommendation to 'BUY'

Investors on European stock exchanges are awaiting the reading of US unemployment claims, which will be announced at 2:30 p.m. No doubt this is the main reading of the day, which will shed more light on the US labor market and the validity of fears of a recession or sudden economic downturn in the context of the Fed decision, which will be announced next week. German companies are doing well today, with the biggest gains coming from Kion Group, the world's second largest forklift manufacturer, and a company in the medical segment, Evotec. The shares of the ocean freight company, Hapag-Lloyd are trying to break out of a sideways trend as the CEO indicated that ocean freight rates are currently 'too low'.

Today's most important macro reading from the Eurozone surprised negatively, with GDP growing below expectations and showing a m/m decline. On the other hand, the data may soften the ECB's narrative somewhat.

Eurozone GDP y/y: 1% Forecast: 1.2% Previously: 1,3%

Eurozone GDP m/m: -0.1% Forecast: 0% Previous: 0,1%

Employment: 0.6% Previously: 0,6%

Two declining quarters of GDP in a row mark the official entry of the eurozone into recession, but markets have not been particularly concerned about this. At the same time, employment remains (pro-inflationary) high.

The mood in Europe during Wednesday's trading session is mostly positive, however, it is apparent that German-listed Microsoft, Nvidia and Apple stocks are deepening declines. Banks, including Deutsche Bank (DBK.DE), are doing much better. Source: xStation5

DE30 contracts have broken out above the SMA200 (red line) and are struggling against the short-term downward trendline. Key levels to watch in case of a pullback could be 15,960 and 15,700 points - both marked by the 23.6 and 38.2 Fibonacci abolitions of the March 2023 upward wave. Source: xStation5

News: 

Shares of Hapag-Lloyd (HLAG.DE) 5, the world's largest maritime trade operator, are gaining more than 2.5% today as the company's CEO Rolf Habben Jansen said that global container freight rates have reached unsustainable levels and must rise.

• According to Jansen, spot freight rates are currently below cost, which is unlikely to continue in the long run as companies will take steps to set them at profitable levels. At the same time, labor and fuel costs have risen, which, combined with low rates, puts the industry under tremendous pressure. 
• Hapag's transportation costs rose 3% year-on-year in Q1 2023 to $1,324/TEU (standard 20 ft container size). Jansen expects them to stabilize at $1,250-1,750/TEU, but still 25% above pre-pandemic levels. In May, Hapag, despite disappointing results, reiterated its annual forecasts for 2023, with EBIT between €2-4 billion.

Recently, rates for 40ft containers on the Shanghai-New York route have increased slightly. However, they are still nearly 80% lower against June 2022. Source: Drewry 

Hapag-Lloyd (HLAG.US) shares, D1 interval. Key support appears to run at €165, which coincides with the 71.6 Fibonacci retracement of the 2020 upward wave and previous price reactions. The price is moving in a sideways trend, between two key Fibo abolitions - a dynamic move could occur from these levels. Source: xStation5