- German DAX trades at yesterday’s levels after PMI data
- Covestro opens 6% higher after reaching a deal with Abu Dhabi National Oil Co.
- Siemens Energy AG's US subsidiary has agreed to pay $104 million to resolve a criminal investigation
General market situation: European markets are heading for a mixed start today. The Swiss SUI20 leads, up 0.2%, with the NED25 index 0.15% higher. The German DAX is trading near the open, while the French CAC40 is down 0.4%. Higher-than-expected PMI data had little influence on the market. EURUSD has recovered from weakening after the data. Euro and US dollar remain the strongest currencies currently. The best performing sectors on the German stock exchange are Health Care and Information Technology, with average gains of 0.8%. Consumer Discretionary is the biggest loser of today’s trading day.
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Volatility is currently observed in the broader European market. Source: xStation
The German DE40 index is trading 0.7% from the all-time-high levels after yesterday’s losses. The current question is whether the DAX will be able to remain at this level. The first support is located at 23.6% Fibonacci retracement level at 19323. If broken, the previous high of 19198.8 might be tested. The next key support may be the mid-July peak at 18,861. Breaking those two levels would open the door for bears to test the 23.6% support or even the 50- and 100-day SMAs. Currently, oscillators are giving bulls ground for further upside, with the MACD increasing and the RSI consolidating near oversold levels. However they are approaching oversold levels which might make investors cautious. Source: xStation
News
- Abu Dhabi National Oil Co. has reached a deal to acquire German chemical producer Covestro AG (1COV.DE) for approximately €11.7 billion ($13 billion). The deal values Covestro at €62 per share, representing a 54% premium to its closing price on June 19, 2023, before initial takeover talks were revealed.
- Siemens Energy AG's (SIE.DE) US subsidiary has agreed to pay $104 million to resolve a criminal investigation into misappropriating confidential information from competitors General Electric Co. and Mitsubishi Heavy Industries Ltd. The misconduct, which occurred over five years ago, was related to a bidding process for a gas turbine plant project in Virginia.
- Commerzbank AG (CBK.DE) is entering the bond market with a new issue of Additional Tier 1 (AT1) notes, assessing investor demand for perpetual US dollar bonds at a yield of around 8%. This move comes shortly after UniCredit disclosed it had built a 21% stake in the German lender and was considering a full takeover.
Other news coming from individual DAX index companies. Source: Bloomberg Financial LP
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