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DAX still under downward pressure
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Ifo data from Germany
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Leopard deliveries support Rheinmetall shares
Wednesday's trading session on markets from the Old Continent brings a deterioration in investor sentiment. Germany's DAX is recording declines today. The calendar of macro readings for today's session is relatively empty, nevertheless investors' attention will focus on the BoC's decision on interest rates. After Wall Street closes, Tesla (TSLA.US) will present its quarterly results.
Ifo index:
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Create account Try a demo Download mobile app Download mobile appGermany, IFO index for January. Current: 90.2. Expected: 90.2. Previous: 88.6
Current conditions: Current: 94.1 Expected: 94.9 Previous: 94.4.
Expectations: Current: 86.4 Expected: 85.3 Previously: 83.2.
As economists at the Ifo institute add, the German economy enters the new year in a cautious but relatively optimistic mood. The institute expects a decline in GDP in the first quarter of 2023.
Investor sentiment on the Old Continent deteriorated on Wednesday. Most companies are now trading at moderate declines. Source: xStation 5
Company news and bank recommendations:
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Rheinmetall (RHM.DE) shares are gaining nearly 2% today on the back of the German government's approval of the delivery of Leopard tanks to Ukraine. Although the shipment itself does not have an immediate financial impact, it raises hopes of replenishing the donated tanks through new orders.
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Brenntag's (BNR.DE) shares gained after receiving an "overweight" recommendation from Morgan Stanley with a target price of €85. The bank also reported that Brenntag is the best chemical company in Europe and hailed the company's shares as a "top pick."
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Shares of Aixtron (AIXA.DE) are losing nearly 7% today following Deutsche Bank's (DBK.DE) downgrade of its rating to "hold." According to the bank, the company's potential at the moment is already contained in the share price. Target price at €33.
The most active stocks in the DAX index (DE30). Source: Bloomberg
DE30 chart:
DE30 futures are trading lower today. The instrument continues to stay below the consolidation near local peaks and near the resistance set by the 78.6% Fibo retracement. Source: xStation 5
