- European indices are trading higher.Markets in the US and Canada are closed today
- Bulls on the DE30 are having trouble permanently overcoming the 16,000 point level
- Weak Sentix data from eurozone, German surplus falls
- ECB's Pierre Wunsch thinks 'a bit more' rate hikes likely needed
- Morgan Stanley raises recommendation on German real estate holding company Vonovia (VNA.DE)
- Strong session for Kion Group (KGX.DE), despite having a "Sell" recommendation by Bernstein
In the absence of a call in the United States and Canada with remarks on the holiday, there should be consequences in Europe sustained in China, where indexes are not a source of growth. The sentix index, a benchmark of sentiment in the application of the euro, to be applied today from the forecast and plotted -21.5 with an expected reading of 20 points. Investors in Germany again saw weak data from the German economy, which could herald additional GDP readings.
Germany's trade surplus fell 15% m/m to €15.9 billion in July, with exports down 0.9% m/m, while imports were up 1.5% m/m. The value of exports to China fell 16.7% to 57.7 billion euros year-to-date. Analysts at Ruland Research point out that many byproduct Germany and are moving products to the US thanks to better tax and business policies, among other factors. The way to proceed based on the days designated, however, when tomorrow's trading on Wall Street.
The DE30 is struggling to break through the main resistance zone, from where an additional one was triggered several times. However, another attack on these levels was finally repulsed for the contracts fell in the area of 15,900 points, respecting the resistance of the SMA200 (red line) at the horizontal level of 16,000 points. Source: xStation5
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Source: monthly chart of Germany's performance balance sheet. Source: Bloomberg Finance LP
Sentiment in Europe is functionally higher today. Another strong session for Novo Nordisk (NOVOB.DK), positive sentiment in China is supporting resource companies including Rio Tinto (RIO.UK). Source: xStation5
Percentage changes in companies listed on the DAX index. Source: Bloomberg Finance LP
Major news from the German stock market. Source: Bloomberg Finance LP
News from companies
Analysts at Morgan Stanley raised their recommendation for Novovia (VNA.DE) to 'Equal Weight' with a target price of EUR23 per share. The price of the giant for the first time in a specific month, on the basis of volume supply and a strong body of green plume, which is characteristic of the SMA200, a signal possible to reproduce the trend.
Source: xStation5
Analysts at Bernstein reiterated a 'Sell' rating for Kion Group (KGX.DE) but the news was offset by the news that a company related to the company's management, i.e. Valerie Jimena Gargiuilo, had purchased shares at an average price of €37.96 for €189,829. The company's shares have fallen since 2021, and while its debt is home, net margins, which in Q1 2023 calculated no earlier than 1%, are melting. The company was in the business of building warehouses, among other things, and is clearly not helped by a weakening German and European industry.
Source: xStation5
