DE30: Tuesday's trading session puts pressure on DAX

• Dax index under downward pressure

• Europe focused on PMI readings

• Swatch optimistic about the future

Tuesday's trading session on markets from the Old Continent brings a deterioration in investor sentiment. Germany's DAX is recording declines today. The calendar of macro readings for today's session is filled with interesting readings. In the second half of the day, investors will be awaiting PMI data from the US. After Wall Street closes, Microsoft (MSFT.US) will present its results.

Data from Europe:

The Eurozone composite PMI rises to 50.2 points, up from the previous level of 49.3 (December). At the same time, this is the highest reading in 7 months! What do the details of the report show?

• Manufacturing grew for the third month in a row and returned above 50 points

• The preliminary reading is based on an 85% response rate, and the services sector scored its first increase above 50 points since July

• Growth in the composite index was motivated by the technology, healthcare and pharmaceutical sectors

• Declines observed in the financial sector, primarily related to the real estate sector

• Sectors related to tourism and recreation indicate stabilization

• Services perform better in Germany, and industry in France

• The rest of the eurozone shows recovery in the industrial and service sectors

The above data suggest that the decline in GDP may no longer be happening in the eurozone. This is another argument for the ECB to maintain its hawkish monetary policy

Investor sentiment on the Old Continent deteriorated on Tuesday. Most companies are now trading at moderate declines. Source: xStation 5

Company news and bank recommendations:

• Rheinmetall (RHM.DE) shares are currently gaining nearly 0.5% following positive comments from the company's CEO, who said he expects turnover of €11-12 billion in 2025 (current consensus at €10.4 billion).

• Swiss company Swatch (UHR.CH) presented its financial results for 2022, with shares currently gaining nearly 1%. As the company reported, solid results in China confirmed expectations that 2023 could be a record year

Source: Bloomberg

• Christine Lagarde has communicated that the ECB will do its best to turn inflation back to target, which may indicate the Bank's willingness to make firmer increases.

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

DE30 chart:

DE30 futures are trading lower today. The instrument continues to stay below the consolidation near local peaks and close to the resistance set by the 78.6% Fibo elimination. Source: xStation 5