- German DAX retreats from zone of historical highs
- Market volatility will be limited by the US holiday
- Wall Street session today will not take place, and trading on many instruments will be shorter
General market situation:
Monday's session on European stock markets brings a slight retreat on most stock indexes. The German DAX is currently losing 0.14% on an intraday basis. At the same time, the French CAC40 is down 0.26%. The DAX remains close to its all-time highs. It is worth remembering that in view of the US banking holiday, today's session may be characterized by lower volatility than usual. There are also no significant macro data releases scheduled for the second part of the day.
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Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 traded nearly 0.42% lower during Monday's session, but nevertheless maintained a dynamic upward trend throughout. The index broke above the key resistance level set by the 50-day EMA (blue curve on the chart) and the local peaks of the consolidation zone of the last few sessions. The dynamic breakthrough of these zones theoretically opened the way for further increases towards the historical peaks at 19,000 points. At this point, however, the index has negated the breakthrough of this zone and we are seeing a pullback. It is worth bearing in mind that the scale of the recent rebound is sizable, which may lead investors to book some of the gains. In this aspect, a relatively important support zone may be the previously mentioned 50-day EMA and 100-day EMA (purple curve on the chart). Source: xStation
News:
Bayer AG's (BAYN.DE) kidney drug Kerendia reduced the relative risk of death and other serious events associated with a form of heart failure in which pumping ability is reduced at most mildly by 16%, data from a clinical trial of 6,000 people suggest. According to an asset manager at Union Investment, this information could confirm the goal of generating $2-3 billion in annual revenue from sales of the formulation. The company will now seek approval to sell the drug. The application date has not yet been announced.
Shares of Sanofi (SAN.FR) are also up nearly 2.5%. Its oral multiple sclerosis drug, tolebrutinib, reached its milestone in a Phase 3 trial, potentially clearing the way for regulatory approval, although in two other trials, patients in earlier stages of the disease did not benefit against placebo use. A positive surprise came from success in a study of a less common form of progressive multiple sclerosis.
In the UK market, however, Rightmove (RMV.UK) is the growth leader. According to media sources, REA Group is considering a takeover bid, although no details are unknown at this point.
Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP
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