DE40: DAX gains 0.5%📈Lufthansa surges almost 5% amid Kepler recommendation

• Futures on the DAX are trading higher today, and the cash DAX is up nearly 0.5 percent. Almost all sectors in the index are posting gains.
• Strong earnings from Lululemon Athletica (LULU.US) supported sentiment toward German footwear and apparel companies Adidas (ADS.DE) and Puma (PUM.DE).
• AQR Capital has disclosed a short position in BASF (BAS.DE), yet shares of the chemical giant are trading higher today regardless.
• EasyJet (EZJ.UK) was downgraded to “hold” from “buy”; the price target was cut to 520 pence (from 650 pence). Shares of the company are rising despite the downgrade.

DE40 Index (D1 timeframe)

DAX futures are maintaining upward momentum on the last trading session of the week. The main challenge for the bulls today is to push above 24,500 points, which could potentially open the path to new record highs.

Source: xStation5

Source: Bloomberg Finance LP

Lufthansa shares gain after Kepler Cheuvreux report

Lufthansa shares are up as much as 6.9 percent, reaching their highest intraday level since August 2023. Kepler Cheuvreux upgraded the German flagship carrier to “buy” from “hold,” pointing to an increasingly attractive risk-to-reward profile and supportive factors heading into next year. The price target was raised to 11 euros (from 7.50 euros).

• The upside potential, analysts note, is “hard to ignore,” highlighting the successful restructuring, a possible recovery in the U.S. economy, and the potential reopening of Russian airspace.
• Additionally, industry-wide capacity constraints and low fuel prices create a supportive market backdrop.
• At the same time, challenges remain, including pressure from labor unions, competition from Middle Eastern carriers, the group’s complex structure, and operational risks.

Source: xStation5