DE30 makes up for some of the early day declines

• DE30 makes up for some of the declines after this morning's plunge

• Germany's CPI inflation falls as expected

• Record number of passengers served in Frankfurt in June lifts Fraport AG shares (FRA.DE)

The trading session on trading floors from the Old Continent is currently marked by declines in the valuations of most benchmarks. Investors' attention today is focused on the U.S. CPI inflation reading for June (1:30 p.m. BST), the BoC's decision on an interest rate hike (3 p.m. BST) and the DOE report (3:30 p.m. BST).

Year-on-year CPI inflation came in at 7.6%, in line with analysts' forecasts and lower than the 7.9% recorded in May. HICP inflation fell from 8.7% y/y to 8.2% y/y, also topping the market consensus. A fuel discount and the introduction of €9 traffic tickets gave German consumers some respite from high inflation in June. The government relief should also ease price pressures during the summer months. However, once the measures expire in September, the inflation rate is likely to rise again as refueling and local transportation become more expensive again, experts warn. 

With inflation in the currency union at a record high, the European Central Bank (ECB) is looking to raise its main interest rate by 25 basis points next week for the first time since 2011.

Chart of the DAX (DE30) index, H4 interval. The German benchmark is currently struggling to maintain the support set by the 12,755-point zone. The 50-period exponential moving average (blue curve) and the upper limit of the 1:1 structure can be regarded as local resistance levels. Source: xStation 5

Company news:

The shares of Fraport AG (FRA.DE) are trading up more than 3.5% today on several factors. First, the number of passengers at Frankfurt Airport in June reached a new record since the outbreak of the coronavirus pandemic. The stock's valuation was also supported by a "buy" recommendation from Berenberg Bank. The bank had previously recommended "hold" on the company's shares. The target price was set at €56.

Shares of broker FlatexDegiro (FTK.DE) are down more than 2% today. Despite good results for the first half of the year, the deterioration in sentiment was triggered by a decline in the momentum of new customer acquisitions and a lower number of transacted business. Adjusted Ebitda amounted to €112.8 million versus the expected €87 million, the preliminary results stated. Revenues were expected to be €209.6 million against a forecast of €207 million. The company booked 38.1 million transactions in the first half of the year versus last year's 53 million (down 28.1%). Consolidated net profit is expected to exceed the second-half total for 2021 (€51.6 million). Analysts at Morgan Stanley and Jefferies note a decline in transactions per customer and a drop in new customers. This half-year is expected to be 282,500 customers compared to last year's 538,000.

Gerresheimer's (GXI.DE) shares are gaining nearly 4% following the release of second-quarter results. The packaging manufacturer reported second-quarter adjusted Ebitda up 5.1 percent to €90 million, on sales up 13 percent to €445 million. As a result, management reaffirmed its annual targets of at least ten percent organic sales growth and adjusted EBITDA growth in the high single-digit percentage range.

Analyst's action:

• Allianz (ALV.DE) downgraded to "neutral" by Citi. Target price set at €190.6

• Hannover Re (HNR.DE) upgraded to "buy" by Citi. Target price set at €162.4

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

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