DE30: Wall Street bank results support sentiment in Europe

• DAX tries to break through recent peaks

• US bank results support markets in Europe

• Covestro surprises with good results 

This week's last trading session was a real battle of market bulls and bears. Although the general mood is rather positive (the majority of companies are currently posting increases), the scale of the gains themselves is limited. Investors' attention today is primarily focused on three factors. The first is, of course, the results of Wall Street banks, which at the moment are surprisingly positive. The other two are the macro readings from the US, including the retail sales report and the University of Michigan sentiment. 

The mood in Europe during Friday's trading session is relatively positive. Source: xStation 5

News:

Covestro (1COV.DE) shares are gaining on the wave of improved market sentiment and the publication of better-than-expected preliminary quarterly results. Net loss reached EUR 30 million against an expected loss of EUR 77 million. EBITDA was expected to reach EUR 286 million against a previously announced range of between EUR 100-150 million. The consensus average was for EBITDA of EUR 158m. At the time of writing, the company's shares are up 1.5%. JP Morgan and UBS maintained a Neutral rating on the company following the publication of preliminary results. Deutsche Bank rated the company as 'buy'. 

Today's session brings close to 2.9% gains in Vonovia (VNA.DE) shares. Aroundtown (AT1.DE) gained 5.3%, LEG Immobilien (LEG.DE) shares gained 2.5% and TAG Immobilien (TEG.DE) shares gained 4%. However, all of these stocks were among the worst performers since the beginning of the year, as they were hit by higher interest rates. The decline in predictions of a continuation of the rate hike cycle strengthens investor sentiment.

Relatively good financial results presented by JP Morgan, Wells Fargo and BlackRock are supporting sentiment in the European banking market. The shares of Deutsche Bank (DBK.DE) are currently gaining almost 4%. The situation is no different for the shares of Commerzbank (CBK.DE), which is currently trading up nearly 3%.

Source: xStation 5

Major percentage changes and news from individual companies in the DAX index. Source: Bloomberg

DE30 chart

Futures based on the German DAX index (DE30) are trading at mixed levels today and are testing the region of yesterday's maximums. Source: xStation 5