DE30: DAX erases significant gains from early session!

• DE30 erases significant gains from early session

• Attention focuses on companies' Q1 2023 results 

• Germany has stopped using nuclear power generation

This week's first trading session on European markets brings relative rallies on the benchmarks from the Old Continent. At one point during the session, the DE30 index tested levels of 16 000 points, nevertheless, most of these gains have now been erased. Investor attention this week will focus primarily on the publication of listed companies' Q1 2023 results.

The mood in Europe during Monday's trading session is relatively positive. Source: xStation 5

News:

• The shares of TeamViewer (TMV.DE) were upgraded by Berenberg to a 'buy' rating from an earlier 'hold' rating. The target price was set at €21 from a previous €14.5. The entity reported that high margins and free cash flow should maintain favourable momentum going forward. 

• Investors' attention this week is primarily focused on the individual companies' financial results reports for Q1 2023. Soaring sales at companies such as LVMH and Hermes International, benefiting from the return of Chinese consumers, triggered a wave of buying in consumer stocks. On the other hand, BASF's weaker results put pressure on companies in the industrial sector. This week, the focus is primarily on:EssilorLuxottica SA (EL.FR) and L'Oréal SA (OR.FR), EasyJet Plc (EZJ.UK), ASML Holding NV (ASML.NL) and SAP SE (SAP.DE). SAP will report its results on Friday. Overall, it is forecast that the company's profitability should increase due to massive cost cuts and the sale of its stake in Qualtrics. There are also predictions of a planned share buyback.

• Germany has stopped using nuclear power generation. The process itself took place on Saturday night. The three power stations Isar-2, Neckarwestheim-2 and Emsland still accounted for 6% of Germany's energy needs in 2022. Now Europe's largest economy will face the unprecedented challenge of securing its energy supply without the use of nuclear power and Russian natural gas and using renewable energy sources. However, critics fear that this move will result in a return to fossil fuels.

Changes in institutional holdings in individual companies of the DAX index (data from the last session). Source: Bloomberg

The largest percentage changes and information from individual companies in the DAX index. Source: Bloomberg

DE30 chart

Futures based on the German DAX index (DE30) are trading at mixed levels today and are testing the region of Friday's closing level. Source: xStation 5