DE40: DAX gains 1.3% amid optimistic sentiments in Europe📈Siemens Energy and Munich Re shares surge 5%

• The DAX gains on the wave of rising stocks in Europe. Shares of the reinsurance giant Munich Re (MUV2.DE) hit new historic highs after the 2024 results.
• Shares of medical giant Fresenius rise by over 7%, trading at their highest since January 2022.
• Deutsche Telekom loses over 2% following weaker-than-expected financial guidance, caused by poor results in Europe. Zalando and Puma also see declines.
• Thyssenkrupp (TKA.DE) extends its euphoric streak, driven by the prospect of spinning off its Marine Services unit via an IPO, which serves contracts for the German Navy.
• Consumer sentiment weakens according to GfK data from Germany. Markets await Nvidia's quarterly results later today after the U.S. session.

European stock market sentiment is positive today, partly as a response to yesterday's press reports indicating that Ukraine agreed to a deal proposed by the United States regarding resource extraction. Ukraine president, Zelensky is expected to visit Washington on Friday to sign the deal. The prospect of peace in Ukraine and dovish signals from the ECB support sentiment in European stocks. However, all eyes will be on Nvidia's report, which could shape the performance of many European stocks such as Siemens AG and ASML in the coming trading sessions this week.

The European stock market is mainly posting gains today. Ahead of the U.S. session, Nvidia's ADRs gain almost 3%. Source: xStation5

Consumer sentiment in Germany according to GfK: -24.6 vs. -21.6 forecast and -22.4 previously. Despite the weaker data, the EUR/USD pair is down just 0.2% today, indicating a minimal change.

Source: Bloomberg Finance LP.

DE40 (D1, H1 intervals)

The DE40 benchmark last fell below the EMA200 between July and August; today it is trading over 20% above it and continues its upward trend.

Source: xStation5

On the hourly chart, we see that the index is moving within an upward price channel. A decline accelerated when the price reached the upper limit of the price channel, but ultimately, strong support was found and the decline was firmly halted.

Source: xStation5

Munich Re surprises positively with its results

Munich Re, the reinsurance company, confirmed its earnings forecast for 2025 on Wednesday after significantly surpassing its earlier targets for 2024. The group posted a net profit of 5.7 billion euros, compared to 4.6 billion euros in 2023.

• Previously, the company had projected a result of 5 billion euros for 2024. In a press release, Munich Re noted that this is the fourth consecutive year that it has exceeded its own forecasts.
• For 2025, the company announced a sales target of 6 billion euros, which opens the door for speculation that it might have again "underestimated" its business potential, with expectations for about a 5% year-over-year profit growth.
• Regarding financial results, Munich Re predicts that the negative impact from the January fires in Los Angeles will amount to about 1.2 billion euros. Competitor Hannover Re estimated the fires would cause losses of 700 million euros.
• Investors were pleased that Munich Re raised its dividend and announced a continued share buyback program. Operating profit also increased to 7.97 billion euros, well above forecasts.
• According to the company, the U.S. fires "were by far the largest fire-related losses in the history of the insurance industry." However, the company added that it is still not possible to make an exact estimate of the losses.

MUV2.DE (D1 interval)

A similar upward price channel can be seen on the daily chart when looking at Munich Re's stock.

Source: xStation5