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DE30 getting closer to local highs
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PPI data from the US confirms inflationary direction after yesterday's CPI reading
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BASF (BAS.DE) warns of weakening consumer demand in chemical sector
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Jefferies downgraded SMA Solar (S92.DE) shares to 'cut' rating amid slowdown in order intake
Equity markets in Europe extended dynamic rallies during Thursday's trading session. The very good sentiment dictated by yesterday's US CPI inflation reading continues to affect markets in Europe, and the trend of declining inflationary pressures was confirmed by today's PPI data.
In addition to the US data, the market paid particular attention to incoming Q2 results from listed companies and the ECB Minutes, which confirmed that we are very likely to see one more interest rate hike at the 27 July meeting. Subsequent decisions will not be made until September and will depend on incoming macro data.
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The investor's mood in Europe during Thursday's trading session is clearly positive. All sectors are recording rises today. Source: xStation 5
German DE30 futures are gaining close to 0.8% during today's session and are climbing to resistance levels set by recent local peaks near the 16 300 - 16 450 points zone . Source: xStation 5
News:
BASF (BAS.DE) warns of weakening consumer demand in the chemicals sector. Moreover, the company has lowered its earnings forecasts due to a slowdown in industrial production. Weakness, however, is evident across the industry as Lanxess (LXS.DE) and Evonik (EVK.DE) also cut their forecasts.
The German company now sees a forecast EBIT of as much as €4.4 billion ($4.9 billion), down from its previous target of as much as €5.4 billion. Sales are expected to reach between €73 billion and €76 billion, with previous forecasts putting the range between €84 billion and €87 billion, analysts estimated at €79.81 billion. However, the company's shares managed to erase the early declines and are currently trading just 0.2% below yesterday's closing levels.
Source: xStation 5
BP (BP.UK) and TotalEnergies (TTE.FR) win Germany's largest wind power auction and secure 4 wind development regions worth a total of €12.6 billion. According to statements from the German grid regulator and the two companies, in the first successful offshore tenders in the country, each company will be awarded two of the four designated areas for development with a total capacity of 7 gigawatts. Germany wants to generate 80% of its energy from clean sources by 2030, and in order to do this it needs to more than triple its wind power capacity to 30 gigawatts. Companies are reporting close to 1% rises in today's session.
Jefferies downgraded its recommendation on shares of SMA Solar (S92.DE) to a 'cut' rating in view of the slowdown in order intake. The target price fell to €105 (previously €120). The company's shares are currently losing more than 2.8 per cent.
Source: xStation 5
Major percentage changes in individual companies of the DAX index. Source: Bloomberg
Information from individual companies in the DAX index. Source: Bloomberg
