DE30 overshadowed by macroeconomic data

• DE30 gains ahead of US inflation reading

• ZEW index worse than expected; German inflation in line with expectations

Tuesday's session on European stock markets brings moderate rallies for most benchmarks. Investors are awaiting today's US CPI inflation reading for August. 

Data:

Germany's ZEW Index came in worse than expected at -61.9 points with an expectation of -60 points and the previous level of -55.3 points. We have a dismal assessment of current conditions, as here it is at -60.5 points with an expectation of -52.1 and with the previous level of -47.6 points.

The ZEW deteriorated mainly due to the high uncertainty about the winter, even despite the clear drop in energy prices recently. 

Inflation in Germany came in line with analysts' forecasts.

Source: xStation 5

The swaps market is currently pricing in a 62% chance of a 75bp rate hike at the ECB's October meeting. Source: Bloomberg

DE30 index chart, D1 interval. The benchmark German blue chips are trading up today and attacking the 13,500 point level. Source: xStation 5

Tuesday's trading session brings increases in Utilities companies. The real estate market is currently under pressure. Source: Bloomberg

Demand for SAP (SAP.DE) shares is rising due to increased sales at its U.S. rival, Oracle (ORCL.DE). As a reminder, Oracle's revenue grew nearly 18% in the past quarter, thanks to a strong Cloud sector.

Bayer (BAYN.DE) is seeking a new CEO for the company, Bloomberg reported.

Changes in the institution's holdings in individual companies of the DAX index (data from the last session). Source: Bloomberg

Bank recommendations:

VW (VOW1.DE) shares downgraded to "hold" from "buy" by HSBC. Target price at €188 (previously €234).

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

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