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DAX struggles to overcome resistance set by Fibo retracement
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Eurozone core inflation continues to rise
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Russian market exit puts pressure on BASF
Wednesday's trading session on markets from the Old Continent brings mixed sentiment among investors. The German DAX is posting moderate gains today and is struggling to stay above the zone of recent local highs and break out above the resistance set by the Fibonacci retracement. The calendar of macro readings for today's session is filled with interesting publications. Investors will learn, among other things: the US PPI inflation reading, the US retail sales reading and the US industrial production report. A review of inflation data in the Eurozone did not bring much change.
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Create account Try a demo Download mobile app Download mobile appLooking at the individual components of inflation in the Eurozone, we see little reason for optimism. Inflation in the services sector reached 4.4% and reached a cyclical peak. Core inflation is rising, which, despite recent unconfirmed comments about a dovish turn in ECB policy, could prompt bankers to hike by 50 basis points. Source: Bloomberg
Investor sentiment on the Old Continent is relatively positive. Most companies are currently posting moderate gains. Source: xStation 5
Company news and bank recommendations:
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BASF (BAS.DE) shares are seeing declines today on the back of a loss due to a €7.3 billion write-down following the exit of subsidiary Wintershall Dea from the Russian market. The chemical giant will suffer a net loss of €1.4 billion because of this (analysts' expectations were for a €4.77 billion profit).
Source: Bloomberg
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Shares of Continental (CON.DE), which released its preliminary results for FY2022, are also under downward pressure, with adjusted cash flow expected to come in at €200 million, well below the expected range of €600-800 million. The results were weighed down by the weak performance of the ContiTech unit.
Source: Bloomberg
The most active stocks in the DAX index (DE30). Source: Bloomberg
DE30 chart:
DE30 futures are trading today slightly above yesterday's closing levels. At the moment, the quotes are holding in a consolidation zone close to local peaks and close to the resistance set by the 78.6% Fibo elimination. Source: xStation 5
