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12:33 · 8 February 2023

DE30: Stocks in Europe gain despite Powell's hawkish comments

  • Stocks from the Old Continent extend gains after Powell's comments yesterday

  • DAX tested the upper limit of the broken consolidation zone and continues upward movement

  • Morgan Stanley increases stake in Zalando

Wednesday's trading session on markets from the Old Continent brings an improvement in sentiment among investors, who reacted positively to Powell's comments yesterday. Contracts on the DE30 tested the previously broken consolidation zone and the recent peaks, and today the German index continues to rise.  The macro calendar for today's session is relatively empty. Investors' attention will focus on speeches by several Fed bankers. After the close of trading on Wall Street, their financial results will be reported by, among others: Robinhood Markets (HOOD.US) and Walt Disney (DIS.US).     

Investor sentiment on the Old Continent on Wednesday is relatively good. Most European companies are currently posting gains.  Source: xStation 5 

Company news and bank recommendations: 

  • E.ON (EOAN.DE) shares are trading up nearly 1.5% today on the release of better-than-expected financial results. Revenue levels in 2022 beat analyst consensus due to unexpectedly higher nuclear power production. Adjusted EBITDA reached €8 billion (consensus was €7.8 billion).

  • Morgan Stanley increased its stake in Zalando (ZAL.DE) to include 5.11% of the voting rights at the General Meeting of Shareholders. Previously, the bank held 4.91% of votes. 

  • Synlab (SYAB.DE) shares continue the declines initiated by yesterday's publication of worse-than-expected financial results. Today, pressure is being put on by downgraded recommendations by: Barclays (target price: €9) and HSBC (target price: €10). 

Companies currently trading the highest and key information from each. Source: Bloomberg

DE30 chart::

DE30 futures traded slightly higher today. The instrument has tested the upper limit of the consolidation zone and resistance set by the 78.6% Fibo retracement and is resuming upward movement. Source: xStation 5

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