DE30: DAX in bullish mood; sizable rallies in Daimler and Evotec shares!

• DE30 returns above the 15,800 point barrier

• ZEW data pointed to worse sentiment in Germany

• Fashion and industrial companies gain on wave of news from China 

• Daimler (DTG.DE) to carry out share buyback and raise forecasts for 2023 

• BMS enters into exclusive global licensing agreement with Evotec (EVT.DE) 

Tuesday's sentiment on European stock markets is upbeat following news yesterday afternoon that China plans to increase and extend its property support programme to boost the economy. At a time when Western central banks are pulling liquidity from the market, China is planning to add it, which in theory should be viewed positively by the stock market. In the face of this news, we are seeing sizable rallies today in shares of fashion companies, for which China is a key market. The macro calendar for today's session is relatively empty. Markets are waiting for tomorrow's CPI inflation report from the US, which is likely to trigger volatility in financial markets. 

The publication of the ZEW data indicated that sentiment in Germany fell well below expectations. Definitely worse sentiment is recorded in the automotive, chemical and steel sectors. The situation in services remains good.

The mood in Europe during Tuesday's trading session is clearly positive. The fashion, steel, chemicals and construction sectors were the main positive sectors. The shares of pharmaceutical companies are trading under downward pressure today. Source: xStation 5

German DE30 futures gained nearly 0.25% during today's session and tested the resistance level set by the 15 800 point zone. Source: xStation 5

News:

Daimler Truck (DTG.DE) shares are gaining more than 2% during today's session on the back of increased earnings forecasts for this year and the announcement of plans to carry out a €2 billion share buyback.  

The German truck maker said it had raised its forecast for adjusted return on sales in the segment to a range of 8.5% to 10% from the previous 7.5% to 9%. The company said group revenues for 2023 are expected to be in the range of €56bn to €58bn, up from the previous €55bn to €57bn.

The company said it reported strong sales in the second quarter due to the stabilisation of supply chains and stronger core markets. According to the data, almost 132,000 vehicles were sold in Q2 (a year ago it was 121,000 units). Daimler increased its unit sales forecast for 2023 to 530,000-550,000 vehicles from the previous range of 510,000-530,000 vehicles.

Daimler Truck (DTG.DE) shares are currently testing resistance levels set by the peak zone of March, June and July this year. Source: xStation 5

Evotec (EVT.DE) is deepening its collaboration with US pharmaceutical company Bristol Myers Squibb (BMS) against neurodegenerative diseases. BMS has decided to exercise its option to enter into an exclusive global licence agreement, which covers an undisclosed number of selected multi-year collaborative research programmes in the field of neurology. Evotec received US$40m as part of the conclusion of the licence. 

Evotec (EVT.DE) shares are currently gaining 4.5%. Source: xStation 5

Jefferies downgrades shares of Henkel (HEN3.DE) to a 'hold' rating with a target price of €77. 

AlsterResearch initiated analyst coverage on Nordex (NDX.DE) with a 'buy' rating and a target price of €24. The company's shares are currently gaining more than 4.5%. 

Shares of Nordex (NDX1.DE) are testing the limit set by the 200-day exponential moving average (golden curve) during today's session. Source: xStation 5 

The largest percentage changes in individual companies of the DAX index. Source: Bloomberg

Information from individual companies in the DAX index. Source: Bloomberg