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DE30 struggles to get back above 12,750 points
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The mood in Europe has improved after the latest round of declines
The last trading session on European markets this week brings an improvement in investor sentiment. Germany's DE30 index is currently trading more than 1.6% up, France's FRA40 is gaining 0.6%, and Poland's W20 is up 0.4%.
Today, in addition to the U.S. retail sales report or University of Michigan sentiment, investors' attention is focused on the publication of U.S. company results.
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The German blue-chip benchmark (DE30, H4 interval) is trying to return above the 12,750-point level, which is further reinforced by the 50-period exponential moving average (blue curve). This level represents short-term resistance for the supply side, while 12,600 points can be considered local support. Source: xStation 5
Company news:
Deutsche Bank (DBK.DE) and UBS (UBSG.CH) are trading up today due to the buyout of the riskiest part of Cornerstone Building Brands' debt by Clayton Dubilier & Rice. The decision will help reduce the amount of debt that banks will have to sell to investors in order to finance CD&R's acquisition of Cornerstone Building Brands. The risky part of the debt that was offered by Deutsche and UBS included PIK bonds. Rising yields on junk bonds triggered by recession fears raised concerns about the inability of the two banks to liquidate their debt. Bullish sentiment was offset, however, by the publication of weak quarterly results from U.S. banks, which begin the earnings release cycle on Wall Street.
The shares of Drägerwerk AG & Co. KGaA (DRW8.DE) are down nearly 1% today following the publication of weak results for the first half of 2022. Net sales fell to around €1,302 million against last year's €1,633 million (down 22%). EBIT for the first half of the year was €112 million against last year's €209.2 million. Nevertheless, based on an expected improvement in the supply situation, the company expects business to recover in the second half of the year. Management continues to expect a decline in net sales in the range of -5.0 to -9.0 percent (excluding currency effects) and an EBIT margin in the range of 1.0 to 4.0 percent (in the absence of a worsening economic environment).
Analyst's action:
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Citi maintained a "neutral" rating on Siemens Energy (ENR.DE) shares. Target price at €16.
The largest percentage changes of companies included in the DAX index. Source: Bloomberg
The most active stocks in the DAX index (DE30). Source: Bloomberg
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