DE30: Deutsche Bank shares trade at new all-time low

Summary:

• European stock markets have begun Tuesday’s trading with moderate gains
• BASF shares upgraded by Bankhaus Metzler
• Deutsche Bank shareholders dissatisfied with the incumbent supervisory board chairman

As indicated by futures contracts, European equity markets have started Tuesday’s trading with gains encouraged by the successful session in China. Moods have improved to some extent following a US decision to grant its companies a 90-day relief allowing them to do business with Huawei. On the other hand, one cannot forget about the upcoming European Parliament elections to be held between 23 and 26 May. Taking into account that stock markets in Europe trade at quite demanding levels, one may suppose that a possible surprise in the elections (a remarkably good result of Eurosceptic parties) could bring stocks valuation down at least in the short-term. We will provide a more comprehensive guide ahead of the elections later this week.

Today’s analysis let’s begin with a look at the DE30 chart at the H4 time frame. After the bearish session on Monday the price neared the lower boundary of the bullish channel and one may expect this level to be tested in the near-term. From this point of view one may suppose that a possible breakdown could incentivize bears to enter the market. As a consequence, the price could be pushed down even toward 11 590 points. Source: xStation5

After the first 30 minutes of trading we may notice that the German DE30 is gaining roughly 0.3% and the similar results are also present in the UK, Italy. At the same time, the stock market in France is unchanged while the Spanish IBEX is trending down by 0.1%. Focusing on revelations from some particular news we would like to mention two companies - BASF and Deutsche Bank.

The German stock market is recovering this morning following the decline registered on Monday. Source: Bloomberg

BASF share are gaining 0.7% this morning after the company was upgraded by a Bankhaus Metzler analyst to buy from hold. He wrote that shares are attractively valued, hence may catch up after their underperformance of 10% so far this year against the sector. A new price target set by the group is 72 EUR, up from 66 EUR per share. On top of that, the analyst added that margins seem to evolve better than previously expected in most segments.

Deutsche Bank is another company of note today due to the fact that investors are growing increasingly dissatisfied with supervisory board chairman Achleitner, as Bloomberg reports. As a result, some important shareholders are reportedly considering to push for Achleitner’s exit before the end of his term in office in 2022. In this regard, one needs to remember about the annual general meeting taking place on Thursday at which some pushes toward a dismissal of Achleitner may occur.

Deutsche Bank shares are trading at their new all-time low on Tuesday. The steady downtrend is seen here for years and nothing suggests it may change any time soon. The first technical obstacle in case of a rebound might be localized nearby 8.90 EUR. Source: xStation5