DE30: Muted reaction to PMI data

• European indices trade mixed
• Mixed PMI reading from Germany
• Lufthansa’s (LHA.DE) second-largest shareholder sells half its stake

European stock markets trade mixed on Friday as investors digested the release of flash PMI surveys. The IHS Markit Germany Manufacturing PMI fell to 64 in May from 66.2 in previous month and below analysts’ expectations of 65.9, as record supply delays caused disruption to production at an increasing number of businesses. This in turn caused further increase of manufacturing purchase prices, which rose at the fastest rate since the start of data collection in 1996. Meanwhile services activity grew to 52.8 in May, from 49.9 in April and above market consensus of 52.0. This is the strongest increase since July 2020, partly due to some lockdown restrictions being relaxed again during the month. On the price front, service sector cost pressures hit the highest for almost 13 years. Today's data suggests that the manufacturing sector in Germany may get out of breath if supply-chain issues continue, which in turn may further increase price pressure.

DE30 launched today’s session higher, however gains were quickly erased after publication of the PMI figures. Nevertheless as long as the index sits above the lower limit of the ascending channel, further upward move is possible. Breaking below this area will invalidate the bullish scenario and a way towards support at 15,210 pts will be opened. Source: xStation5

Lufthansa (LHA.DE) stock fell more than 5% in premarket after news that KB Holding GmBH, Thiele family’s investment vehicle, which is the second largest shareholder after German government, will sell 33 million of its 60 million shares of the airline group.

Lufthansa (LHA.DE) stock launched today’s session with a bearish price gap and is currently testing support at €10.09 which coincides with the lower limit of the triangle formation. Should break lower occur, then downward may accelerate towards next support at €8.86. Source: xStation5

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