DE30 muted ahead of NFP report

• DE30 muted ahead of NFP report

• Industrial production data surprises positively

• Deutsche Post (DPW.DE) publishes Q2 results

Market sentiment during today's trading session on European trading floors is mixed. The German DE30 is down 0,09%,  the French FRA40 is losing 0,41% and the Polish W20 is down  0,31%.

 Investors' attention in this week's last trading session is focused on the NFP report from the US, which is crucial from the perspective of the further path of monetary tightening by the Fed. In Germany, investors were surprised by the industrial production report, which unexpectedly rose by 0.4% in June (forecast: -0.4%, earlier: -0.1%). Nevertheless, let's remember that the situation in the economy remains very difficult all the time. In Germany, the prevailing energy crisis is becoming more and more noticeable. EnBW intends to raise energy prices for households by 31.1% as of October 1.

DE30 index chart, H4 interval. The blue-chip benchmark is seeing minimal declines today and has broken out below the 13,680-point zone. From a technical point of view, the closest supports are the 50% Fibo abolition zone and the barrier at 13,450 points. The most important resistance today remains the previously mentioned 13,680 points barrier and the 61.8% Fibo abolition zone. Source: xStaton 5

News: 

• Lufthansa (LHA.DE) has resolved a dispute with its ground staff and decided to raise wages for some 20,000 employees in an effort to avert further strikes Yesterday the company reported Q2 results, which came in better than expected. For more details, see the DAX post of 04/08/2022. 

• Deutsche Post (DPW.DE) shares are gaining more than 6.5% in today's session following the release of better-than-expected Q2 results. EBIT came in at €2.34 billion versus expectations of €2.02 billion (+12% y/y). Revenues amounted to €24.03 billion (forecast: €21.74 billion). Net profit rose 13% year-on-year to €1.46 billion. The group confirms forecasts for 2022. Declining volumes in the private customer segment are being compensated by corporate customers. The freight sector is reporting good results.   

Analyst's action:

• Beiersdorf (BEI.DE) with a "hold" recommendation from Deutsche Bank. Target price at €105. 

• BASF (BAS.DE) with a recommendation downgraded to "hold" from Jefferies. Target price at €47.

• Covestro (1COV.DE) with recommendation upgraded to "buy" from Jefferies. Target price at €40.

• Lanxess (LXS.DE) with recommendation downgraded to "neutral" from Citi. Target price at €40.

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

The most active stocks in the DAX index (DE30). Source: Bloomberg