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Europe in uncertainty amid continued sell-offs in Asia
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Ifo revises downward its GDP forecasts and expects a more severe recession
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FedEx puts pressure on postal and shipping companies
Markets in Europe are trading in mixed sentiment today, which is also a direct result of the prolonged wave of sell-offs on stock markets in China. On the other hand, Ifo, the leading research institute on German economic affairs, has revised its forecast for the German economy, predicting a sharper recession than previously expected. Analysts now predict that the German economy will contract by 0.4% in 2023, compared to an earlier forecast of a 0.1% decline. This sentiment is also expected to continue in 2024, when growth is expected to reach 1.5%, compared to earlier forecasts of 1.7%. The macro calendar for today's session will focus on Powell's speech today.
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Open account Try demo Download mobile app Download mobile appThe mood in Europe during Wednesday's trading session is relatively positive. Values of companies from the automotive, banking and semiconductor sectors are doing very well today. Source: xStation
German DE30 futures are trading in mixed sentiment today, nevertheless, after the start of the cash session, the quotes recovered some of their losses. Source: xStation 5
News:
Postal and shipping stocks are losing today in the face of worse-than-expected earnings forecasts for 2024 (fiscal) from FedEx (FDX.US). Sentiment around the industry is deteriorating, and the $4 billion austerity program being introduced may not work. For the fourth quarter of 2023 alone, the company's revenues fell by more than 10%.
European competitors are posting declines today. Deutsche Post (DPW.DE) is losing 1.5%, PostNL (PNL.NL) is off 0.7%, and Bpost (BPOST.BE) is losing 1.3%.
The company's shares are losing today on the wave of FedEx's results, and are descending to the area of support marked by the abolition of the 38.2% Fibo of the downward wave initiated at the end of August 2021 and the confluence of the 50-, 100- and 200- EMAs (blue, purple and gold curves, respectively). Source: xStation5
According to a statement, the Lufthansa Group (LHA.DE) has agreed to sell Lufthansa AirPlus Servicekarten GmbH for about 450 million euros to SEB Kort Bank AB. The transaction is expected to have a positive impact on the Lufthansa Group's adjusted EBIT margin and, due to AirPlus' capital-intensive business model, a return on invested capital. The transaction is expected to be completed in the first half of 2024. LHA shares are currently gaining nearly 1%.
Chart of Lufthansa (LHA.DE) shares, W1 interval. Source: xStation 5
Lanxess (LXS.DE) extends yesterday's downward wave, losing nearly 2% today. HSBC and Jefferies have lowered their target prices for the company's shares to €30 per share and €28, respectively. Jefferies analysts comment that a 4x leverage ratio and imposed pressure on free cash flow may further weaken sentiment around the company.
Lanxess (LXS.DE) shares, W1 interval. Source: xStation 5
Changes in the institution's holdings in individual companies of the DAX index (data from the last session). Source: Bloomberg
Largest percentage changes and information from individual companies in the DAX index. Source: Bloomberg
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