- German DAX gains 0.62% at start of week
- “Fashion” under broader supply pressure
- Barclays cuts recommendation for Adidas shares
Overall market situation:
Monday's session on European stock markets brings gains on most stock indexes. Germany's DAX is currently trading near 0.62% gains. At the same time, France's CAC40 is adding 0.6%. The DAX is currently testing a key support point, set by the 50-day EMA. Investors' attention today turns to corporate news coming out of individual companies.
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Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is trading nearly 0.80% higher during Monday's session and is currently testing a key 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. The key resistance point, on the other hand, remains the local peak in the 19,000-point zone and the zone of Friday's peak near 19,630 points. Source: xStation
News:
Kering (KER.FR) shares are down as much as 2.5% after the luxury company was downgraded by analysts at Barclays and RBC. What's more, Barclays also downgraded Burberry (BRBY.UK), lowering its outlook for the entire sector. Analysts are taking a more cautious view of the sector, saying that the country's luxury weakness is structural and not just cyclical. Both companies were given an “underweight” rating from an earlier “neutral.”
- Burberry downgraded to “underweight” at Barclays; target price 540 pence
- Kering downgraded to Outperform in line with sector sentiment at RBC; target price 290 euros
- Kering downgraded to “underweight” at Barclays; target price 210 euros
Current sentiment in the fashion company sector. Source: xStation
Adidas (ADS.DE) shares are also down nearly 4%. Barclays downgraded the sportswear manufacturer to “equal-weight” based on a less favorable outlook in China. The new target price is €215; previously it was €254.
Kion (KGX.DE) shares are losing 3% after Citi downgraded the company to neutral due to likely “slow” growth in the near term. The new target price is €37 against the last rating of €57.
Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP
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