DE30: European companies without common direction ahead of CPI report

• German DE30 loses slightly ahead of US CPI report
• SAP reacts to lower Oracle results
• Rheinmetall wins significant order from Austrian government

Overall market situation:

Tuesday's European market session is marked by expectations for the US CPI report for November. The importance of today's publication is further enhanced by the fact that it comes just a day before the announcement of the FOMC's interest rate decision (Wednesday, 8:00 pm). While the report may not have much impact on this week's decision, it could help shape expectations for the timing of the first interest rate cut in 2024.

The German DE30 is losing slightly intraday today, with other benchmarks trading at mixed levels. In Europe, the biggest declines are currently seen on the Polish W20, which is losing more than 1%.

European companies listed during Tuesday's trading session are currently trading at mixed levels. Source: xStation 5

The DE30 is losing nearly 0.32% during today's session and is trading in the zone of local lows from yesterday's session. Source: xStation 5

News:

US software giant Oracle (ORCL.US) posted lower-than-expected sales in the second quarter. The stock fell more than eight percent in after-hours trading in the U.S. session, and downward pressure is also being felt by SAP (SAP.DE) shares, a perceived sector company. It's worth noting, however, that Oracle's performance was negatively impacted primarily by the IaaS sector, which is negligible for SAP. The company's shares are currently losing nearly 0.4%.  

Source: xStation

Defense company Rheinmetall (RHM.DE) has won a large order from Austria. The Austrian government has contracted Rheinmetall to upgrade its existing Skyguard air defense systems. The order is worth €532 million.

Fitch has affirmed Continental AG's (CON.DE) long-term issuer default rating and long-term unsecured senior debt rating at BBB, with a stable outlook.

The stable outlook reflects expectations that the group will increase its EBIT margin to more than 7% by 2026 and generate positive free cash flow (FCF).

Oddo BHF reaffirmed an "overweight" rating on Aixtron (AIXA.DE) shares and set a target price of €50 (previously €45). 

Analyst recommendations:

* Merck (MRK.DE): BNPP Exane lowered its recommendation on the company's shares to a "neutral" rating. Target price set at €150.

* Beiersdorf (BEI.DE): JP Morgan reiterated a "buy" rating on the company's shares. Target price set at 145 euros.

* Hannover (HNR.DE): UBS reiterated a "sell" rating on the company's shares. Target price at 185 euros.