DE30: DAX in uncertainty at start of new trading week

• DAX tries to extend recent gains

• PMI data for Germany revised downwards

• H&M (HMB.SE) and Zalando (ZAL.DE) under pressure from JP Morgan comments

The first trading session of the week brings moderate rallies in the DAX index (DE30). Today's session, however, has no common denominator in terms of the direction of trading, with investors focusing their attention on the macro calendar for the moment, in particular the services PMI index readings.

Revised data from France and Germany, as well as the Eurozone as a whole, showed lower PMI readings than initial publications. Readings from Spain and Italy also fell short of expectations and turned out to be lower than a month ago. Nevertheless, the services sector in all major European economies is still in an expansionary phase with PMI readings above the 50-point threshold.

The mood in Europe during Monday's trading session is mixed. Weakness is mainly shown by companies in the luxury goods, internet and marketing and metals sectors.  Source: xStation 5

News: 

Shares of H&M (HMB.SE) and Zalando (ZAL.DE) are trading under selling pressure today, reacting to comments from investment bank JP Morgan. According to the financial institution, online sales trends look weak in the German market. As JPM analysts add, Zalando's online traffic alone has seen a double-digit decline. At the moment, H&M's shares are losing more than 0.6% and Zalando's shares are losing more than 3.1%.

Zalando (ZAL.DE) share chart, D1 interval. The German company's shares are currently moving in a downward channel and are descending to levels not seen since November 2022. Source: xStation 5

In the telecomm market, investor attention is focused on reports on Amazon (AMZN.US), which is in talks with mobile network operators to introduce a free or very low-cost phone service for Amazon Prime users. Reports suggest that, at this point, the companies being considered by Amazon are Verizon Communications (VZ.US), T-Mobile (TMUS.US), whose majority shareholder is Deutsche Telekom (DTE.DE), and Dish Network (DISH.US). According to media reports, talks have been ongoing for six to eight weeks and include AT&T (T.US), but the plan could take several more months to implement and be abandoned.

Nevertheless, during Friday's session, the news triggered huge sell-offs in the shares of the various phone giants (with the exception of Dish Network, which finished more than 13% higher, as the news could help the struggling satellite TV company in its transformation into a national telecoms provider). Deutsche Telekom (DTE.DE) shares then lost nearly 9%. They are currently trying to minimise their losses.Deutsche Telekom (DTE.DE) share price chart, D1 interval. Source: xStation 5

Changes in institutional holdings in individual companies of the DAX index (data from the last session). Source: BloombergMajor 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 slightly up today and are attempting to break above the peak zone of the last few sessions. Source: xStation 5