- European indices are slightly rebounding in the early part of the day.
- The biggest gainers include banks, energy and fuel sectors, as well as clothing and luxury goods.
- The German DAX index is up 0.25%.
The start of this important new week is bringing a slight rebound in the European market. We are seeing moderate gains across all markets, mainly driven by better-than-expected PMI reports. Final manufacturing readings have surpassed investor expectations. The surprise in the publications was positive for all major economies except Italy, where PMI dropped from the forecasted 48.8 to 46.9. Despite the data being better than expected, it is not yet a reason for full optimism, as the main PMI index in all countries, except Spain, remains well below the 50-point threshold.
The European market, much like the American market, is currently focused on the upcoming U.S. presidential election. Trump's policies on immigration, taxes, and tariffs are generally seen as inflationary, which could lead to higher interest rates in the USA. On the other hand, a win for Harris would likely be more of a continuation and an inevitable reversal of the global market’s Trump Trade, potentially allowing European stocks to recover relative to American ones.
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Create account Try a demo Download mobile app Download mobile appSentiment in European markets is moderate today. The clear favorites of today's session are companies in the banking, energy, and clothing sectors. Source: xStation 5
DAX (D1 Interval)
Declines in the German index are being halted near the key support zone above 19,000 points. A similar level saw a slowdown in the upward correction at the beginning of October. Today, the index is gaining another 0.25% to 19,350 points. Upward, the nearest resistance remains just above 19,600 points. However, if the current support zone is breached, we can expect further declines toward 18,800 points.
Source: xStation 5
Company News
Evotek (EVT.DE) is among the top gainers on the German market today. Stock is trading more than 8% higher at €7.70. The company will publish its quarterly results on Wednesday 6 November.
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Aston Martin's (AML.UK) gains 5% after quarterly results. Earnings call presented a mixed but focused outlook: Q3 saw increased wholesale volumes, revenue, and stable cash liquidity, despite flat EBITDA. The company targets a £500 million EBITDA by 2025, supported by a robust product launch pipeline, including the Vanquish, which begins deliveries in late 2024. External risks from global supply chain issues and challenges in China persist, but Aston Martin remains optimistic, eyeing U.S. market growth and operational efficiencies. The order book extends into Q1 2025, and a £2 billion R&D investment will drive the transition to hybrid and electric vehicles.
Burberry (BRBY.UK) gains 4.9% amid reports that Moncler is considering a bid, sparked by luxury publication Miss Tweed. Burberry's market value has fallen 53% over the past year, which analysts believe may attract Moncler's interest. While Moncler dismissed the speculation as "unfounded rumors," sources suggest LVMH's Bernard Arnault supports the potential acquisition.
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