DE30: DAX struggles for a sustained breakout above 16,000 points!

• DE30 returns above the 16,000 point barrier

• UBS supports sentiment around Deutsche Post

• Goldman Sachs strengthens oversold Siemens Energy share

Wednesday's session on the Old Continent brings better investor sentiment. The themes of the day, in terms of macro events, will be the speeches of the central bank governors who are attending a conference in Sintra, Portugal. The only sectors that are now seeing more weakness are metals/mining and fuels.   As GfK data showed, consumer confidence in Germany once again surprises downwards, with a reading lower than the stock market consensus.

The mood in Europe during Wednesday's trading session is overwhelmingly positive. Only oil and mining stocks are under pressure today. Source: xStation 5

German DE30 futures are trading close to 0.5% higher today, which managed to lift the benchmark above the psychological barrier of 16,000 points.  Source: xStation 5

News:

RBC Capital Markets has reissued analyst coverage on Lufthansa (LHA.DE) at a 'sector perform' rating with a target price of €10 per share. 

As communicated by analysts at UBS bank, the recent warning about the performance and customer volumes of FedEx (FDX.US) does not seem to have a direct impact on Deutsche Post (DPW.DE) shares. UBS forecasts a 4% decline in express parcel margins in the second quarter, but nevertheless claims that this decline will be partially offset by lower costs. Deutsche Post's second-quarter EBIT is forecast at €1.62bn and even if the peak season turns out to be weak, full-year EBIT could be close to the mid-point of the forecast of €6.5bn, UBS said. 

Deutsche Post (DPW.DE) shares, D1 interval. The shares have once again managed to defend the support zone defined by the lower limit of the upward channel and the stock is now approaching the area of recent local peaks.  Source: xStation 5

Siemens Energy (ENR.DE) shares gained almost 5% after Goldman Sachs maintained its buy recommendation. The bankers report that the negative narrative resulting from the recent warning will lead to a 'deep oversold' state.  

Recent sessions have triggered dynamic declines 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 back off its 2023 forecasts. 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 shares of Siemens Energy (ENR.DE) are trying to negate some of the recent dynamic declines. Source: xStation 5

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

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