- DE30 gains sharply during Wednesday's session
- At 1 p.m. GMT, CPI data from Germany for November
- Philips loses after FDA comments
General market situation:
European indices, as well as US index futures, are posting gains today. The initiator of such good sentiment is primarily the declines in US yields. What is worth adding, US debt securities in all likelihood may record their best month of trading in nearly 40 years. The DAX broke above the 16,100-point barrier today and is trading near 1% gains. At 1:00 pm GMT, we will learn preliminary CPI data for November from Germany.
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Most companies listed during Wednesday's trading session are currently gaining. Source: xStation 5
The DE30 broke above resistance, at 16050 points confirming the upward sentiment. The stock has been trading in a steep upward channel since the end of October, and a breakthrough of the mentioned resistance at 16050 points may open the way even towards historical maxima in the 16550 points area. Short-term resistance, on the other hand, is the level tested today at 16200 points, where the 78.6% Fibonacci retracement is located. Source: xStation 5
News:
Shares of Aroundtown (AT1.DE) are down more than 5% in today's session. Analysts commenting on the company's published results said that deleveraging remains a major concern for the German real estate company. Baader analysts forecast a further decline in funds from operations in fiscal 24/25, as rising rents do not offset potentially higher perpetual bond costs.
Due to the devaluation of its real estate portfolio, the net loss was just under €1.4 billion (a year ago it was a profit of €578 million). Like many of its competitors, the Group is struggling with high interest rates.
Annual forecasts and selected financial data. Source: Bloomberg Financial LP
Chart of the company's stock price. Source: xStation
The U.S. Food and Drug Administration (FDA) is warning about Philips' (PHIA.NL) Dream Station 2 respirators, which, according to agency comments, can catch fire in extreme cases. As a result, the company's shares are trading down nearly 4.5%.
Analyst recommendations:
* BMW (BMW.DE): J.P. Morgan raised its recommendation on the stock to an "overweight" rating. Target price set at €110 (18% higher than yesterday's session close)
* Volkswagen (VOW1.DE): J.P. Morgan downgraded its recommendation on the stock to a "neutral" rating. Target price set at €128
* Siltronic (WAF.DE): Berenberg raised its recommendation on the stock to a "buy" rating. Target price set at 107 euros. The resilience of the pricing policy is expected to support growth in EBITDA margins and free cash flow, according to the company's analysts.
