DE40: German DAX remains stable after hitting a new all-time high, while broader markets seek direction

• BASF shares fell after Jefferies downgraded the German chemical giant to hold from buy

• Deutsche Bank shares edged up as the bank announced plans to issue a multi-tranche bond deal

• Allianz shares dipped after Goldman Sachs analyst Andrew Baker downgraded the insurance giant to neutral from buy

European markets are predominantly in negative territory today, with only a few indices showing gains. Switzerland's SUI20 is down 0.45% to 12370, while Germany's DE40 has fallen 0.29% to 24024.6.

The pan-European EU50 index has declined by 0.27% to 5442.6, and Austria's AUT20 is down 0.23% to 4317. France's FRA40 has dropped 0.16% to 7878.4, while the Netherlands' NED25 shows a 0.10% decrease to 933.08. Italy's ITA40 is experiencing a slight decline of 0.06% to 40369.

In contrast, the UK's UK100 is one of the few gainers, up 0.09% to 8755.0. Poland's W20 is showing the second strongest performance with a rise of 0.39% to 2800.6. The VSTOXX volatility index has increased by 0.82% to 18.53, and Spain's SPA35 leads today's gains with a 1.14% increase to 14302.

Today's predominantly negative trading session suggests investors are exercising caution across European markets, marking a shift from the previous day's more optimistic sentiment.

Volatility is currently observed in the broader European market. Source: xStation

The German DE40 Index is retesting its previous high after making ATH yesterday, yet it remains above the 23.6% Fibonacci retracement level and the 50-day SMA—both acting as key support zones. Bulls will look to maintain momentum above recent highs to confirm the breakout, while bears may attempt to drive the index below those levels, with the 50-day SMA as a near-term target. The RSI is easing just below overbought territory, indicating a potential cooldown in bullish momentum. Meanwhile, the MACD is beginning to narrow, signaling caution as buying pressure may be losing steam. Source: xStation

Market News

• BASF shares fell after Jefferies downgraded the German chemical giant to hold from buy, citing earnings drag from current chemical spreads; analyst Chris Counihan noted that without clear demand improvement, global chemical utilization rates will likely remain soft and near bottom of cycle levels, leading Jefferies to lower estimates 11% below the bottom end of guidance and reduce price target to €47 from €52.

• Deutsche Bank shares edged up as the bank announced plans to issue a multi-tranche bond deal, including unsecured and unsubordinated senior preferred bonds with 3-year and 5-year tenors, as well as Senior Non-Preferred bonds with 4NC3, 6NC5, and 11NC10-year terms; Deutsche Bank will serve as bookrunner alongside Daiwa, Mizuho, and SMBC, reinforcing the bank's strong capital position following its recent share buyback announcements.

• Allianz shares dipped after Goldman Sachs analyst Andrew Baker downgraded the insurance giant to neutral from buy, setting a price target of €374, which still implies a 6.4% increase from the last price; the downgrade follows Allianz's recent quarterly earnings report on May 15, which showed both earnings and sales trailing analyst estimates, despite the company's previously announced share buyback plans and positive long-term earnings projections.

Other news coming from individual DAX index companies. Source: Bloomberg Financial LP