DE40: European stocks gain at the start of the new trading week 📈

• Markets gain at the start of the week
• Exit Poll results of second round of elections in France initiating volatility in Europe
• Delivery Hero company may be fined more than 400 million euros by the European Commission

General market situation:

Monday's trading session in Europe brings gains on the major stock market indices. Germany's DAX is currently gaining 0.83%, France's CAC40 is up 0.90%, and Britain's FTSE 100 is up more than 0.21%. Investors' attention turns today to the results of the Exit Poll of the second round of elections in France. Despite initial weakness in the euro market and European equities, losses were quickly erased. The macro calendar for today's session is relatively empty, so investors' attention will turn to incoming corporate news. 

Although there is not much clarity in French politics at the moment, the worst-case scenarios in terms of creating volatility in the market, i.e. an absolute majority for the right-wing National Assembly or the left-wing New Popular Front, have been avoided, which brings some relief to investors, even if the main deadlock scenario is not optimistic either.

Volatility currently observed in the DAX index. Source: Bloomberg Financial LP

Volatility currently observed in the broad European market. Source: xStation

Germany's benchmark DE40 is up nearly 0.19% during today's session. The index is attempting to negate the downward trend structure initiated on May 16. The continuation of the downtrend led to the testing of a historically important support level in the zone of the 100-day exponential moving average (purple curve on the chart, all the while it remains a key support point). Locally, the most important resistance, having pierced the 50-day EMA (blue curve), is now the zone of the peak of Friday's session (combined with the peak of April 2 this year). A possible breakthrough of this zone could encourage the demand side to test the historical peaks in the 19,000-point zone. Source: xStation

News:  

Delivery Hero (DHER.DE) could be fined more than €400 million by the European Commission for alleged anti-competitive behavior. Delivery Hero subsequently increased the reserve set aside for the case. The higher provision could amount to more than 3.5% of the company's market capitalization, or more than 29% of adjusted Ebitda for 2024 and more than 69% of reported Ebitda, Morgan Stanley reported. The fine is a risk to estimates and could delay or undermine consensus expectations for free cash flow growth. The company's shares are currently losing 11%.

Grifols SA (GRF.SA) reported that its founding family and Brookfield Capital Partners (UK) Ltd. have launched a takeover and delisting effort. 

Shares of French banks Societe Generale (GLE.FR), BNP Paribas (BNP.FR) and Credit Agricole (ACA.FR) are in focus today after the results of the Exit Poll of the second round of the French elections. Political uncertainty and pressure on French sovereign bonds pose risks for banks, as they are the main holders of French debt. The left has also talked about raising banks' mandatory capital buffers and transaction taxes, and has outlined plans for higher taxes on wealth, dividends and share buybacks. At the moment, however, the stock prices of these banks are rising. 

The oversold shares of French banks today are regaining some ground, despite lingering uncertainty in the sector. Source: Bloomberg Financial LP

AP Moeller Maersk (MAERSKA.DE) sees delays caused by extreme weather along the South African coast, especially between Cape Town and Port Elizabeth, will affect ship traffic and maritime operations. The stock is currently losing 5%.

Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP