DE40: Mynaric shares surge 22%; DAX holds gains despite weak ZEW data

• Germany's DAX gains during Tuesday's session
• Jefferies analysts have begun analyst coverage of SUESS MicroTec shares
• Mynaric AG reported progress in the mass production of its CONDOR Mk3 laser communication system

General market situation:

Tuesday's session on European stock markets brings better investor sentiment. Germany's DAX is currently gaining 0.47%. Britain's FTSE 100 adds 0.72%. At the same time, France's CAC40 adds 0.51%. The DAX as a whole remains above a key support point, set by the 50-day EMA. Investors' attention turns today to data from the US, namely the retail sales and industrial production report for August. German ZEW economic sentiments came in 3.5 vs 17 exp. and 19.4 previously. ZEW economists stated, that hope for a swift improvement in the economic situation in Germany is visibly fading. 

Volatility seen today in the broad European market. Source: xStation 

The German benchmark DE40 is trading nearly 0.17% lower during Tuesday's session. The futures-based index nevertheless continues to hold above the important support level set by the 50-day EMA (blue curve on the chart). A dynamic breakthrough of these zones could theoretically open the way for further declines towards the 100-day EMA and the 200-day EMA (purple and gold curves on the chart, respectively). The key resistance point, on the other hand, remains the local peak in the 19,000-point zone. Source: xStation

News:

Shares of SUESS MicroTec (SMHN.DE) are gaining more than 12% at the start of Tuesday's trading session after Jefferies initiated analyst coverage of the company with a “buy” rating and a target price of €76 (the current market price is €60). The semiconductor supplier can be described as a “hidden gem,” wrote a Jefferies analyst in her buy recommendation published Tuesday. In Nvidia's supply chain and in the field of artificial intelligence (AI), the company holds a unique position in Europe. The Jefferies representative referred to the company's multi-layered offerings in the Chip on Wafer on Substrate (COWOS) segment, which accounts for about thirty percent of the company's sales.

Mynaric AG (M0YN.DE) reported progress in series production of its CONDOR Mk3 laser communication system, overcoming previous production delays and supply chain problems. Deliveries will be made under the Space Development Agency's Tranche 1 program. The company is actively seeking additional capital to maintain operations and expand production. Mynaric is strengthening its position in the market by participating in several major space communications programs and developing quantum communications technologies with government support. The company's shares are currently up more than 22%.

Suedzucker (SZU.DE) lowered its earnings forecast yesterday, pointing to higher expectations for harvests in the European Union, which will increase the amount of sugar on the market.

Europe's largest sugar producer now expects revenues of between €9.5 billion and €9.9 billion in the 2024/25 fiscal year, a figure previously expected to be between €10 billion and €10.5 billion. Underlying earnings will be between €550 million and €650 million, compared to a range of €900 million to €1 billion. Warburg's downgrade today to a “sell” rating pushes the company's shares 3.5% lower. 

Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP