DE40: DAX consolidates near all time highs after five higher trading days in a row 📣

• European indices are trading lower.
• The DAX is losing about 0.10%, testing the historical high.
• The Euro is one of the stronger currencies.

The beginning of the week starts mixed for markets in the Old Continent. Despite losses on most European markets, volatility in the first part of the day is limited. Indices are recording changes in the range of -0.30% to +0.05%. The most losing index is the UK100, which is down 0.40% to the level of 7636 points, followed by the Austrian AUT20 (-0.30%). The German DAX index is trading around -0.10% and is losing to the level of 17750 points.

Market News

• Jeremy Hunt announced new funding to support the UK’s manufacturing sector ahead of his budget Wednesday. The chancellor described the budget as prudent and responsible, as he aims to temper hopes for tax cuts.
• The US and Jordan airdropped about 38,000 meals into Gaza on Saturday, making good on Biden’s promise of emergency humanitarian aid.
• Ukraine is bracing for a Kremlin disinformation campaign that will seek to undermine Volodymyr Zelenskiy. The president is particularly vulnerable as his five-year term comes to a close without a vote to seek reelection.
• The European Central Bank’s hope that euro-zone wages rise just enough to fuel economic
  expansion, without reigniting inflation, will be put to the test by a slow drip of data releases that will determine when
  interest rates can safely be lowered.
• The economic mood in the euro area has improved again, although data came below forecasts. The economic indicator collected by the analysis institute Sentix rose by 2.4 points to minus 10.5 points in March, as the consulting company announced on Monday in Frankfurt. It is the fifth increase in a row.

DAX

The German index is trading at historical highs. Since mid-February, the DAX has recorded over 5.00% gains, which is still a poorer result compared to indices across the ocean in the USA. Last week, the DAX recorded 5 consecutive days of gains, so if the index closes below the threshold today, it should be understandable. In case of a deeper correction, the level of 17100 points should be kept in mind, which is the upper limit of the last consolidation.

Source: xStation 5

Company News

BMW Group (BMW.DE) declares that the construction work is underway for its manufacturing facility for Gen-5 high-voltage batteries in Rayong province of Thailand, according to a company statement. Total capital expenditures is estimated to exceed 1.6 billion baht (approximately €42 million). In addition to the battery facility, the company is preparing another production site in Thailand for the manufacture of fully electric vehicles. The production of these Battery Electric Vehicles (BEVs) is scheduled to commence in the second half of 2025.

Evonik (EVK.DE) a German chemical company announced on Monday that it does not foresee a recovery in 2024 and plans to cut up to 2,000 jobs globally by 2026 as part of a cost-cutting initiative. The company expects these job reductions to save around 400 million euros ($433 million) annually.

Source: xStation 5

Henkel (HEN3.DE) shares trade lower by 4%, reversing earlier gains, following the company's announcement of its in-line fourth-quarter results. Henkel reported a 4.2% organic sales growth for the full financial year 2023, achieving total sales of €21.5 billion. Despite the strong organic sales, overall group sales declined by 3.9%, largely due to the divestment of business activities in Russia.

Source: xStation 5