- German DAX trades lower today
- Halozyme Therapeutics Inc. has made a non-binding offer to acquire German drug developer Evotec SE
- RWE AG has announced a €1.5 billion ($1.6 billion) share buyback program
General market situation:
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Open account Try demo Download mobile app Download mobile appEuropean markets are showing mixed performance, with the Spanish SPA35 leading gains at 0.44%, while the Dutch NED25 is marginally up by 0.06%. The Italian ITA40 and French FRA40 are slightly lower, down 0.06% and 0.11% respectively. The UK's UK100 has declined 0.18%, while the Austrian AUT20 is down 0.23%. The broader EU50 and German DE40 are both in negative territory, falling 0.31% and 0.34%. The Swiss SUI20 and Polish W20 show the largest declines among European indices, dropping 0.77% and 0.93% respectively.
Dax Returns by Sector. Source: Bloomberg Financial LP
The German DAX is down 0.55% overall, with most sectors trading in negative territory. Consumer Discretionary is the only notable gainer, up 0.20%. Information Technology is showing the largest decline (-1.50%), followed by Health Care (-1.07%). The Industrials sector, a significant component of the DAX, is down 0.49%. Other notable declines include Materials (-0.14%), Utilities (-0.17%), Financials (-0.24%), and Communication Services (-0.29%). Real Estate also shows weakness, declining 0.47%. The visualization shows a predominantly bearish sentiment across sectors, with 9 out of 10 sectors trading lower.
Volatility is currently observed in the broader European market. Source: xStation
The German DE40 Index is trading above the 38.2% Fibonacci retracement level but below the 50-day SMA. For bears, the 50% Fibonacci retracement level is the first test, having previously acted as support. If breached, the 100-day SMA and 61.8% Fibonacci retracement level could be retested. For bulls, key resistance lies at the 23.6% Fibonacci retracement level. RSI shows bearish divergence with lower highs and lows, while MACD indicates negative sentiment. Source: xStation
News
- EON (EOAN.DE) has increased its investments by 20% to €4.7 billion ($5 billion) in the first nine months of 2023, primarily focusing on grid expansion and modernization. Despite a 14% drop in adjusted EBITDA to €6.7 billion, the company maintains its full-year profit guidance of €8.8-9 billion. The utility faces uncertainty regarding a pending court case on grid returns.
- RWE AG (RWE.DE) has announced a €1.5 billion ($1.6 billion) share buyback program amid concerns over U.S. offshore wind investments following Trump's election and slower European hydrogen development. The company's shares surged over 8% on the news, marking their best performance in two years. RWE also raised its 2024 earnings outlook, now targeting the midpoint of its adjusted EBITDA range of €5.2-5.8 billion.
- Siemens AG (SIE.DE) reached an all-time high stock price after forecasting up to 7% revenue growth for the coming year, driven by strong demand from data centers for its transformers and grid technology. The company announced a record €9 billion net income for fiscal 2024 and increased its dividend by 11% to €5.20 per share. CEO Roland Busch also confirmed plans to proceed with the €10 billion acquisition of Altair Engineering Inc.
- Halozyme Therapeutics Inc. (HALO.US) has made a non-binding offer to acquire German drug developer Evotec SE (EVT.DE) for €11 per share, valuing the company at €2 billion ($2.1 billion). The offer represents a 27% premium to Evotec's closing price. The news comes as Evotec works to rebuild investor trust following the departure of its previous CEO Werner Lanthaler and disclosure of delayed stock trade reporting.
Other news coming from individual DAX index companies. Source: Bloomberg Financial LP
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