- Fashion companies under downward pressure
- Morgan Stanley optimistic about biotech companies
Overall market situation:
Monday's session on European markets brings a significant deterioration in market sentiment. Very weak sentiment persists in the luxury brand companies sector, which are losing in the face of weaker sentiment in China and comments by the chairman of the board of directors of Valentino and Balmain, Mr. Rachid Mohamed Rachid.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
At the moment, most companies listed in Europe during Monday's trading session are down. Companies linked to the luxury goods sector are doing particularly poorly. Source: xStation
Prices of contracts based on the German DE30 are losing nearly 0.73% on an intraday basis and are slightly breaking out below the support zone set by the 200-day exponential moving average (gold curve). Source: xStation 5
News:
The only sector that is showing better sentiment across the broad market spectrum is pharmaceutical companies, benefiting from Morgan Stanley's upbeat comments about the sector. The investment bank believes the sector could provide a refuge from slowing growth. The bankers pointed to obesity treatments and "smart chemotherapy" as segments that could create high demand in the market in the future, which directly appears to support Novo Nordisk (NOVOB.DK) and AstraZeneca (AZN.UK), but also sees markets reacting positively to improved earnings momentum in the short term. Biopharmaceuticals in the European Union are expected to post nearly 12-13% net profit growth over the next two years (twice that for the Old Continent as a whole).
Source: xStation 5
Entain (ENT.UK), has been weighing on the entertainment sector and has seen the largest scale of declines in the sector, reaching nearly 9%. The company issued a warning on online gaming revenues.
Source: xStation 5
BNP Exane raised its recommendation on Ubisoft (UBI.FR) shares to an "outperform" rating and sets a target price of €37 per share. The bankers say the market is underestimating the prospects stemming from the release of new games Star Wars: Outlaws and Assassin's Creed: Red.
Source: xStation 5
The largest percentage changes in individual companies in the DAX index. Source: Bloomberg Finance L.P.
Information from individual companies in the DAX index. Source: Bloomberg Finance L.P.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
