DE30: DAX in panic at the end of the week; historical declines of Siemens Energy shares!

• DE30 historic falls below 16,000 points and 50-day EMA

• Siemens Energy with historic share price decline

• Morgan Stanley boosts recommendation on Evotec share

European benchmarks are extending a dynamic wave of declines today, which in the case of the benchmark DAX lifts the stock below the psychological barrier of 16,000 points and another important support set by the 50-day exponential moving average. The immediate cause of the declines today is the very weak PMI data readings from Europe. Moreover, equities are prolonging the wave of sell-offs following the recent dynamic rises. 

The mood in Europe during Friday's trading session is negative. However, on the other hand, ADRs on US companies are maintaining better momentum.  Source: xStation 5

German DE30 futures are down today, breaking out of important support at the 50-day exponential moving average (blue curve). This level is the most important control point for the demand and supply sides at the moment. Source: xStation 5

News:

The attention of investors in Germany today is primarily drawn to Siemens Energy (ENR.DE), whose shares on the stock exchange are trading close to 35% down due to problems at the Siemens Gamesa wind turbine unit responsible for the wind turbines, which forced the company to issue a profit warning and withdraw its forecasts for 2023. Quality defects in the turbines, despite the massive pressure on performance, could put an additional strain on the company's budget by nearly €1 billion. 

Gamesa has long struggled with rising prices for steel and other key raw materials, as well as a series of technical problems with installed and unfinished wind turbines.

As reported by investment bank analysts commenting on the decision to issue an earnings warning, investors may be reluctant to look at the company's shares in the medium term, given the high operational uncertainty. On the other hand, however, the relatively attractive stock market valuation may be a supportive factor for the bulls. Siemens Energy reported that the effects of shortcomings at Siemens Gamesa could be felt for years.

The performance warning issued lifted the stock to its largest historical share price decline on a daily basis for the company. D1 interval. Source: xStation 5

Walory spółki Evotec (EVT.DE) zyskują blisko 3,5% w związku z podniesioną rekomendacją na akcje spółki przez Morgan Stanley. Cena docelowa ustalona na poziomie 29 euro. 

Evotec (EVT.DE) started today's session with a bullish price gap, which rebounded from the supports defined by the 50-day and 200-day exponential moving averages (blue and gold curves respectively). Source: xStation 5

Largest percentage change in individual DAX index companies . Source: Bloomberg

Information from individual DAX index companies. Source: Bloomberg