- European stock markets in uptrend, Polish W20 leads in gains (+0.93%), German DE40 gains more than 0.5%
- Trump raises volatility in steel and aluminum sector; Thyssenkrupp and Kloeckner shares in focus
- TSMC with mixed results for January; what does this mean for European tech?
Overall market situation: European markets are trending mostly positive, with most indices on the upside. The W20 leads in gains (+0.80%), followed by the NED25 (+0.75%). The FRA40 adds 0.51%, and the UK100 gains 0.70%. Germany's DAX gains 0.5% during Monday's session.
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The broader European market is seeing gains in most economic sectors. Source: xStation
Germany's DE40 index is gaining ground today and is making up for some of the declines that took the stock below historical highs. The most important support for the index invariably remains the 50-day EMA (blue curve on the chart) and the support area of the consolidation zone near 21,230 points. Technically, the DE40 continues to maintain a stable upward trend all the time. Source: xStation
Corporate news
Shares of Thyssenkrupp (TKA.DE) and Kloeckner (KCO.DE) lost as much as 4% today, after which the companies' stocks erased most of their losses after Trump announced plans to impose a 25% tariff on steel and aluminum imports to the US. It is worth mentioning, however, that Europe is not an overly important trading party in this case. You can find the largest exporters of these metals to the US in the table below.
US trade links to steel and aluminum. Source: Bloomberg Financial LP
However, this does not change the fact that in Europe it is Germany and thus the companies Thyssenkrupp (TKA.DE) and Kloeckner (KCO.DE) that are responsible for a large share of the share of imports of these raw materials to the US, which is why we saw initial declines in their stock prices after the news was released.
Source: Bloomberg Financial LP
Also worth watching today are semiconductor-based technology companies (ASML, Siltronic, Soitec, BE Semiconductor, VAT Group and ASM International), as Taiwan Semiconductor Manufacturing Co.'s sales growth slowed in January compared to December, as the company grappled with industry-wide questions about the legitimacy of spending on artificial intelligence. TSMC reported that revenue in January rose 36% to $293 NT. Analysts expect an average 41% increase in sales. It's worth noting, however, that these figures may not accurately show the nature of things, as the period includes the banking, multi-day Lunar New Year holiday in Asian markets.
Other news from European markets:
- Elliott wants to increase stake in BP
- Renault resumes talks with Foxconn to sell stake in Nissan
- German court settles patent dispute with Amazon in favor of Nokia
- BMW will continue to invest in internal combustion engines and hybrid technology
Other news from individual companies in the DAX index. Source: Bloomberg Financial LP
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