DE30: DAX close to local highs ahead of FOMC; big merger in UK telecom sector📱

• DE30 continues to rise ahead of FOMC decision

• Contracts close to local peaks from May 19

• Vodafone and Three UK have decided to merge!

• Shell with plans to extend dividend and buy back shares

Market sentiment during today's session is helping to extend the recent upward momentum in European equity valuations. The German DE30 is also replicating this movement and heading towards recent local highs. Today, all investor attention is focused on the FOMC decision at 07:00 pm BST, which will indicate whether a pause in US rate hikes awaits us. Prior to that, US PMI inflation data will be released at 01:30 pm BST. Investors should bear in mind that today's FOMC decision is bound to trigger heightened volatility on most financial instruments.

The mood in Europe during Wednesday's trading session has been mostly positive. Very good sentiment was dominated by the automotive and metals sectors. Source: xStation 5

German DE30 futures continued their move to break out above the consolidation structure set last week. At the moment, the quotations are heading towards the local peaks from the second half of May . Source: xStation 5

News:

Vodafone (VOD.UK) and CK Hutchison, owner of the Three UK network, have reached an agreement to merge their UK operations. However, talks between the companies themselves had been ongoing for a year. Vodafone will own 51% of the combined company, leaving a minority stake for CK Hutchison. The new combined company will invest £11 billion ($13.91 billion) in the UK over the next 10 years.

The merger of Vodafone's UK operations and Three UK will reduce the number of mobile operators in the country to three. As reported by the company, existing Vodafone and Three UK customers will be able to enjoy improved services at no extra charge. The fate of the merger itself, however, will depend on the approval of the deal by the CMA (anti-trust authority) in the UK, which has recently sought to make it more difficult to initiate large mergers and acquisitions. Last month, the CMA took action to block Microsoft's $69 billion acquisition of gaming company Activision Blizzard.

The projected impact of the merger on the combined companies. Source: Vodafone

Vodafone (VOD.UK) shares are gaining 3.18% in today's session, nevertheless it is worth remembering that the company has been in a downtrend for many years. Source: xStation 5 

Porsche Automobil (PAH3.DE) shares are gaining 1.8% during today's trading session, following an upgraded recommendation on the company's shares by Berenberg. The target price was set at €76 per share. 

Good sentiment during today's session was also recorded by oil companies. In this regard, a noteworthy company is Shell (SHELL.NL), which announced today that it will increase its dividend and expand its share buyback programme. The company intends to increase dividends by 15 per cent and increase the pace of its share buyback programme from the second quarter to US$5 billion from US$4 billion in recent quarters.

Shell PLC (SHELL.NL) shares are currently gaining close to 2.5%. Source: xStation 5

Companies in the DAX index with the highest volatility at the moment. Source: Bloomberg

The largest percentage changes and information from individual companies in the DAX index. Source: Bloomberg