- Falling session at the beginning of the week
- Lufthansa warns of cabin crew strikes
- Dividends boost LEG Immobilien shares
Overall market situation:
This week's first trading session on European markets brings a wave of declines. The German DAX is currently losing nearly 0.64%, the French CAC40 is losing 0.35% and the Euro Stoxx 50 benchmark is down 0.76%. The macroeconomic calendar scheduled for the session itself is relatively sparse, so market sentiment may largely depend on quotes and news from major listed companies.
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European companies listed during Monday's trading session are mostly down at the moment. Source: xStation 5
The German benchmark DE40 is trading down nearly 0.4% during today's session. Thus, the index is descending to important zones of possible support defined by the 50-period exponential moving average (blue curve, H4 interval). The zone of local maxima of the consolidation zone near 17920 points can now be considered as local resistance. Source: xStation 5
News:
The Lufthansa cabin crew union (LHA.DE) has called on its members to strike at Lufthansa and short-haul carrier CityLine on Tuesday and Wednesday to demand higher wages. The strike, which its members voted in favour of, will affect departures from Frankfurt Airport on Tuesday and from Munich on Wednesday. Lufthansa said around 100,000 passengers will be affected by the strike. The company's shares are losing just over 1% during today's session.
LEG Immobilien (LEG.DE) shares are gaining more than 4% today after the company resumed dividend payments and announced that it expects valuation levels to stabilise this year. The loss for the year was €1.565 billion, compared to a net profit of €237.4 million in 2022. "For LEG, the peak of the real estate crisis is behind us," - CEO Lars von Lackum said in a statement. LEG's board intends to pay a dividend of EUR 2.45 per share for 2023. The company had waived this in the previous year.
Allianz Group (ALV.DE) is launching a share buyback programme of up to one billion euros. The buyback via the stock exchange will start next Monday and will last until 31 December.
Other news about individual companies included in the DAX index. Source: Bloomberg Financial LP
Analyst recommendations:
- KBW downgraded the shares of Munich Re (MUV2.DE) to 'Market Perform'. Target price at €435.
- HSBC reiterated its rating on shares of Telefonica Deutschland (02D.DE) at "Hold". Target price at €2.35.
- Jefferies downgraded its rating on shares of HelloFresh (HFG.DE) to "hold". Target price at €7.5.
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