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DAX in mixed mood ahead of FOMC decision
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EMU inflation below expectations! Core reading slightly higher
Wednesday's trading session on markets from the Old Continent brings a slight strengthening of sentiment among investors, who are waiting for today's FOMC decision on US interest rates. The German DAX is recording moderate declines today and continues to stay close to the consolidation zone in the area of recent local peaks. We have a very interesting day ahead of us as far as the macro calendar is concerned, and it is not surprising that most of the market movements will just depend on the reaction to specific data. Today we are awaiting the ADP report for November, the JOLTS data for December, the ISM index for industry for December, among others. At 07:00 pm GMT we will learn the FOMC decision, and at 07:30 pm GMT Jerome Powell's speech. After the close of the Wall Street session, Meta Platforms will present its results.
EMU inflation:
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The downward movement is primarily in goods prices. Services prices also declined marginally. Keep in mind, however, that this data does not include inflation from Germany. Source: ec.europa
Core inflation remains at record levels. Source: Bloomberg
Investor sentiment on the Old Continent improved slightly on Wednesday. Most companies are now posting moderate gains. Source: xStation 5
Company news and bank recommendations:
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The shares of Hannover Re (HNR.DE) are losing nearly 4% during today's session, despite the publication of quarterly results that met analysts' expectations. Sentiment was mainly affected by forecasts for 2023, which were revised downward. The company now forecasts that net income in 2023 will reach €1.7 billion, nearly 11% less than analysts had expected. The company also intends to increase its loss budget due to an increase in the likelihood of extraordinary losses.
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Swiss pharmaceutical company Novartis (NOVN.CH) is down today due to a drop in net sales in Q4 2022. The company is still feeling the impact of the company's restructuring. A positive factor for investors is the decision to increase the dividend from 3.1 to 3.2 francs per share.
Source: Bloomberg
Companies currently trading the highest and key information from each. Source: Bloomberg
DE30 chart:
DE30 futures are trading lower today. The instrument continues to hold in a consolidation zone close to local peaks and close to the resistance set by the 78.6% Fibo retracement. Source: xStation 5
