Wednesday's session on European markets brings mixed sentiment around the major stock exchanges. In Germany, investors' attention is focused on the German Federal Government, which plans to introduce a cap on electricity prices for households and industry. In order to finance this project, the government is considering deducting part of the profits of energy companies. Scheduled on the calendar today are data from the US real estate market, as well as Tesla's (TSLA.US) results.
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Create account Try a demo Download mobile app Download mobile appThe swaps market is currently pricing in a near 92% chance of a 75bp rate hike at the ECB's October meeting. Source: Bloomberg
DE30 index chart, D1 interval. The benchmark of German blue chips is trading down moderately today and is struggling to permanently break through the resistance set by the abolition of the 23.6% Fibo of the downward wave initiated in November 2021. The demand side unsuccessfully tested the 13,000-point limit. Source: xStation 5
Wednesday's session on the German market brings mixed valuations for most economic sectors. Source: Bloomberg
News:
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The German Federal Government plans to introduce a cap on electricity prices for households and industry. In order to finance this project, the government is considering deducting part of the profits of energy companies, according to the document. The above announcement puts tremendous pressure on utility companies. The program would be financed in tandem with the $200-billion package that Chancellor Olaf Scholz's government announced late last month. At this point, however, it is unclear what proportion the federal government will use. According to preliminary data from Reuters, the government could take away up to 90% of energy profits (only those above production costs, excluding coal, gas and biomethane power generation).
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Investors reacted very negatively to the results of Sartorius (SRT.DE), which is currently losing nearly 10%. The company expects revenue growth at the lower end of its forecast range of 15% to 19%.
Recommendations:
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RBC lowered its target price for Continental (CON.DE) shares to 58 euros from 86 euros.
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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