- German DAX suspended ahead of FOMC
- Citi analysts raised recommendation for BMW
- German Ministry of Finance confirmed plans to sell entire Commerzbank stake
General market situation: European markets will be tense today in anticipation of the FOMC decision. The German DAX is currently down 0.1%. The British FTSE 100 is giving up 0.5%. At the same time, the French CAC40 is losing 0.3%. The DAX remains above a key support point, marked by the 23.6% Fibonacci retracement. Investors' attention will be almost entirely focused on the FOMC decision today. Earlier data on the US housing market and oil inventories may provide clues.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appVolatility is currently observed in the broader European market. Source: xStation
The German DE40 index is at yesterday's levels. At the same time, this is the third session with very little price change, which may indicate the prospect of a larger move soon. For bulls, resistance may be the mid-July peak at 18,861. Breaking through it would allow testing of previous highs. Bears, in turn, after passing through the 23.6% Fibonacci retracement, may test the 100 and 50-day SMAs. Currently, oscillators indicate trend exhaustion. RSI is consolidating in the neutral zone, with MACD close to a bullish signal. Information flowing from the US will remain significant for the market.
News:
Commerzbank AG (CBK.DE) shares are gaining investors' attention after the German Ministry of Finance confirmed plans to sell its entire stake in the bank, despite UniCredit SpA's recent move. The ministry, led by Christian Lindner of the FDP party, aims to sell the shares at the best possible price, even if it means UniCredit could acquire more shares. However, the decision to sell further requires unanimous approval from a committee comprising representatives from various government bodies, including Chancellor Olaf Scholz's office. The German government committed to a 90-day lock-up period on selling more Commerzbank shares after the latest transaction with UniCredit. Currently, the government remains the largest shareholder in the bank with a 12% stake.
BMW AG (BMW.DE) shares are noting an increase after Citi analysts upgraded the company's recommendation from "Sell" to "Neutral," setting a target price of 74 euros. Harald Hendrikse, a Citi analyst, justified the change in stance by stating that current expectations for BMW are very low, and the current share valuation is too low to justify maintaining a sell recommendation.
Other news coming from individual DAX index companies. Source: Bloomberg Financial LP
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
