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Old Continent wipes out some of early session gains
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PMI data confirms weakness in the industrial sector
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UBS weakens sentiment among fashion/ luxury goods companies
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Tesla's ADRs up nearly 5.5% after record delivery results
The first trading session on European markets this week saw moderate rallies on most stock indices. However, the bullish sentiment from the beginning of the session is waning somewhat, with attention in this sphere coming down to the PMI readings for manufacturing, which indicated further weakness in this area of the economy. On the other hand, however, a good session in Asia, as well as a rebound in the prices of some industrial metal prices, managed to prop up the quotations of companies in the metals and mining sectors.
European industrial PMIs for June
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Spain: 48.0 vs 47.7 expected (48.4 previously)
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Italy: 43.8 vs 45.4 expected (45.9 previously)
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France: 46.0 vs 45.5 at first publication (45.7 previously)
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Germany: 40.6 vs 41.0 in first publication (43.2 previously)
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Eurozone: 43.4 vs 43.6 at first publication (44.8 previously)
The mood in Europe during this week's first session is clearly bullish. For the moment, the worse sentiment is recorded mainly by the luxury goods, healthcare and pharmaceuticals sectors. Source: xStation 5
German DE30 futures are not showing excessive deviations during today's session. The benchmark is currently testing resistance levels set by local peaks from mid-May. Source: xStation 5
News
Sentiment in the luxury goods sector is under pressure today from UBS Bank, which has lowered its target prices for the shares of the most representative companies in the sector. The bank's target price for the shares of Compagnie Financiere Richemont (CFR.CH) fell to CHF 182 against an earlier assessment of CHF 189, for the shares of Hermes International (RMS.FR) the price fell to €2232 against €2246 and for the shares of LVMH (MC.FR) €979 against the previous €988. Moreover, caution towards shares from this sector is advised by Barclays.
The mood in the luxury goods sector is under pressure at the start of the week. Source: xStation 5
Tesla (TSLA.DE) shares listed in Frankfurt were up 4.9% in early trading after the company reported that it delivered a record number of vehicles in the second quarter.
Shares in conglomerate AstraZeneca (AZN.UK) fell as much as 6% after the company's proprietary lung cancer treatment failed to show the results expected by analysts. You can read more about the whole issue here.
Mining and quarrying stocks are gaining as rising metal prices and improved sentiment in China improve market sentiment in the sector. Source: xStation 5
The largest percentage changes in individual companies in the DAX index. Source: Bloomberg
News from individual companies in the DAX index. Source: Bloomberg
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