12:40 PM · 2 February 2023

DE30: Will the ECB decision manage to extend the upward momentum triggered by FOMC?

  • DAX in bullish mood after yesterday's FOMC decision

  • Investors' attention turns to the ECB decision today

  • Deutsche Bank slightly disappoints with its Q4 2022 results

Thursday's trading session in markets from the Old Continent brings a strengthening of sentiment among investors, who continue to buy in Europe after yesterday's bullish reaction to the FOMC decision. We have a very interesting day ahead of us as far as the macro calendar is concerned, and it is not surprising that most of the market movements will precisely depend on the reaction to specific data. Behind us is the BoE decision, which turned out to be in line with expectations. At 1:15 pm GMT we will learn the ECB's interest rate decision. The consensus for the ECB decision is 50 bps. After the close of the Wall Street session, we will learn Q4 2022 earnings reports from, among others: Apple, Amazon and Alphabet.

Investor sentiment on the Old Continent on Thursday improved after yesterday's FOMC decision. Most companies are now trading up. Source: xStation 5

News from companies and bank recommendations: 

  • Investor attention in Germany is focused on Deutsche Bank's (DBK.DE) quarterly results, which somewhat disappointed the market. The weaker results are mainly due to weaker results from the investment banking sector, higher costs and a lack of details on the share buyback program. The bank's CEO also added that the bank does not rule out the possibility of cutting staff. 

Source: Bloomberg

What 2019 resolutions have you managed to fulfill? Source: Refinitiv

 

  • Good results were reported today by Infineon Technologies (IFX.DE), whose shares are trading up nearly 6.5% today. Good data and yesterday's decision by the Fed, which supported sentiment around technology companies, are supporting strong share price increases today. The company raised forecasts for next year and added that demand for semiconductors related to the automotive industry is not waning. 

Source: Bloomberg

Companies currently trading at their highest levels and key news from each. Source: Bloomberg

DE30 chart:

DE30 futures are trading higher today, with the instrument breaking out above the consolidation zone and breaking through resistance set by the 78.6% Fibo retracement. Source: xStation 5

 

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