- DE30 tests key support at 15,700 points
- ZEW data points to weakness in German economy
- SAP loses on wave of lower Oracle results
- DE30 at important support levels
Overall market situation:
Tuesday's session on European markets brings declines for most companies. The wave of sell-offs today was fueled by the US dollar, which resumed a wave of gains against other currencies, reducing demand for risk-related assets.
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Create account Try a demo Download mobile app Download mobile appThe macroeconomic calendar for today's session is relatively empty, nevertheless, investors in Germany focused on the ZEW institute data, which showed us a slightly weaker indication than expected, current conditions in the economy continue to deteriorate, which also goes along with the expectations themselves.
On the other hand, however, these expectations are likely to grow over the next six months due to the positive narrative of easing monetary conditions in the world's major economies (Eurozone, US, China), ZEW reported. It is primarily due to this that the ZEW sentiment index has seen an increase.
At the moment, most of the companies listed in Europe during Tuesday's trading session are trading down. Source: xStation
Quotations of contracts based on the German DE30 lost nearly 0.75% today and descended into the area of technically important support zones set by the 15,700-point zone. The contracts failed to break out above the 100-day exponential moving average (purple curve). Source: xStation 5
News:
SocGen initiated analyst coverage of Duerr (DUE.DE) with a "buy" rating. Target price at €35.
The stock is trading near the lowest levels seen this year. Source: xStation 5
Jefferies raised its target price for Beiersdorf (BEI.DE) shares to €152 against the previous €140 per share.
SAP (SAP.DE) shares are losing nearly 3% today on weaker-than-expected earnings forecasts from Oracle (ORCL.US), which is struggling with lower spending in its cloud segment. Moreover, the first-quarter results themselves also fell slightly short of analysts' expectations. However, analysts see that the growing adoption of artificial intelligence could help the company's business in the future.
"As of today, artificial intelligence development companies have signed contracts to purchase more than $4 billion worth of capacity in Oracle Gen2 Cloud. That's twice as much as we booked at the end of Q4," said Larry Ellison, Oracle's president and chief technology officer.
The company forecast revenue growth of 5-7% in the second quarter, the consensus was for 8.2% growth.
Source: xStation 5
The largest percentage changes in individual companies in the DAX index. Source: Bloomberg Finance L.P.
Information from individual companies in the DAX index. Source: Bloomberg Finance L.P.
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