DE30 gains before NFP reading

• DE30 gains before NFP reading

• Nikon makes offer for SLM Solutions shares (AM3D.DE)

The last session of the week brings a rebound after yesterday's sell-off in stock indices. Investors are focused today on the NFP report, which will be closely watched by the Fed when it next decides how much to raise interest rates. In Germany, we learned today of better data on Germany's foreign trade balance (July). Euroland's PPI inflation accelerated to 37.9% y/y (forecast at 37% y/y, earlier reading at 36% y/y). 

The swap market is now pricing in a 62% chance of a 75 basis point rate hike by the ECB at its meeting next week. Source: Bloomberg

DE30 index chart, D1 interval. The benchmark German blue chips are trading up today and tested the 12,800-point area today. Source: xStation 5

Friday's German trading session brings gains in all components of the DAX index. Industry and the discretionary goods and services sector are doing particularly well. 

• A sizable rally is being recorded today by E.ON (EOAN.DE), which is benefiting from a report suggesting the continued operation of two nuclear power plants. The stock is currently gaining more than 3%. 

• Investors' attention was no less stolen today by SLM Solutions (AM3D.DE), whose shares jumped 74%. All thanks to Nikon's acquisition of the company. The Japanese company is offering 20 euros per share. 

Analyst action: 

• Henkel (HEN3.DE) shares downgraded to "cut" by Goldman Sachs. Target price at €62

• Lufthansa (LHA.DE) upgraded to "add" by AlphaValue/Baader

• Nordex (NDX1.DE) raised to "buy" by Citi. Target price at €12

The largest percentage changes of companies included in the DAX index. Source: Bloomberg

The most active stocks in the DAX index (DE30). Source: Bloomberg