Tuesday's trading session in Europe brings a slowdown in the bullish momentum of the indices, sparked by a lower CPI inflation reading in the US. Investors' attention in Germany today focuses primarily on the ZEW index reading.
The expectations sub-index beat market forecasts by a huge margin. The increase in the current sub-index was not as large as in the case of expectations, but was also noticeable. Nevertheless, both indexes are still deep in negative territory.
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Expectations: -36.7 vs. -51.0 expected (-59.2 previously)
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Current situation: -64.5 vs -69.3 expected (-72.2 previously)
Today, investors will also learn the US PPI inflation reading (1:30 pm GMT).
The swap market is currently pricing in a near 44% chance of a 75bp rate hike at the ECB's December meeting. Source: Bloomberg
DE30 index chart, D1 interval. The benchmark German blue chips are posting moderate gains today. Source: xStation 5
Tuesday's German market session brings slightly lower valuations for most economic sectors. Source: Bloomberg
News:
Upbeat sentiment remains especially on the shares of Infineon (IFX.DE), which are currently gaining nearly 2%. Recall that yesterday the company's shares rose by up to 9%, all thanks to the announcement of ambitious long-term targets. The company also raised its earnings targets.
Bank recommendations:
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Barclays raises target price for Merc KGaA (MRK.DE) shares to €210 from previous €200
The largest percentage changes of the companies included in the DAX index. Source: Bloomberg
The most active stocks in the DAX index (DE30). Source: Bloomberg
