DE30: Yields drag European indices down

• DE30 drops at start of week
• Varta resumed deliveries to "important" customer
• Volkswagen cuts margin forecasts

General market situation:

This week's first trading session on European markets brings a sell-off in indices. Investor sentiment continues to be weighed down by the conflict in the Middle East and Treasury bond yields, which in the case of 10-year US Treasury bonds hit the 5% level today (a level not seen since 2007). The key macro topic this week will be the ECB's interest rate decision (Thursday). 

At the moment, most of the companies listed in Europe are trading down during Friday's trading session. Source: xStation 5

Futures based on the German DE30 are trading nearly 0.77% lower on an intraday basis and are trading near local lows from March this year. Source: xStation 5

News:

Varta (VAR1.DE) shares are gaining more than 6% after CEO Markus Hackstein told the Augsburger Allgemeine newspaper that the company has resumed deliveries to an "important" customer (the details of that customer, however, were not disclosed). 

Interestingly, the company produces car batteries, as well as batteries for headphones for companies such as Apple (AAPL.US).

Source: xStation 5

Volkswagen (VOW1.DE) shares are losing more than 3% and are trading at their lowest levels since April 2020. The German carmaker lowered its profit margin forecast for the current year.

Faced with the negative effects of commodity price hedging, the company's new revised projections call for a return on sales of 7.0-7.3%, compared with the 7.5-8.5% previously forecast. Volkswagen maintained its forecasts for deliveries and sales. Raw material price hedges have led to a €2.5 billion non-cash loss, the company added, which it will not be able to offset until the end of the year. Volkswagen's full quarterly figures will be released on Thursday. The company's shares are currently losing nearly 2.5%.

Source: xStation 5 

Analyst recommendations:

* ASML Holding NV (ASML.NL) : Bernstein lowers target price to EUR 630 from EUR 710.

* Duerr (DUE.DE) : Deutsche Bank cuts target price to EUR 25 from EUR 45

* LVMH (MC.FR) : HSBC cuts target price to €900 from €950.

* Nokia Oyj (NOKIA.FI) : Jefferies cuts target price to €4.1 from €4.5

* Salvatore Ferragamo SpA (SFER.IT) : Citigroup cuts target price to €11.8 from €14.1

 * Salvatore Ferragamo SpA (SFER.IT) : Deutsche Bank cuts target price to €12 from €15.5

* Sartorius AG (SRT.DE) : JP Morgan cuts target price to €240 from €365

* Societe Generale SA (GLE.FR) : RBC cuts target price to €30 from €32

* Watches of Switzerland (WOSG.UK) : Jefferies cuts target price to 700p from 900p

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.