- European markets gain at start of new week
- French banks rebound; automotive gains after tariff news
- Adnoc raises takeover bid for Covestro
Overall market situation:
The first trading session on the German stock market this week is proceeding in an upbeat atmosphere.News of the suspension of consultations on the imposition of tariffs on electric cars between Europe and China is driving the European autmotive sector during today's session. There is also a lot going on in the shares of Covestro and Zalando.
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Volatility currently seen in the DAX index. Source: Bloomberg Financial LP
Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is up nearly 0.5% during today's session. The index continues to hold the structure of the downtrend initiated on 16 May. The continuation of the downward trend led to a test of the historically important support level in the zone of the 100-day exponential moving average (purple curve on the chart, it still remains a key support point). Locally, the most important resistance all the time remains the zone of the 50-day exponential moving average (blue curve). The DE40 index is currently testing this zone.
Interestingly, the test of the zones of the previously mentioned 100-day EMA brought a clear activation on the volume side. This may indicate that we have seen a lot of institutional investor activation in this zone. Source: xStation 5
News:
News of the suspension of consultations on the imposition of tariffs on electric cars between Europe and China drives the European autmotive sector during today's session. The growth leaders on the German stock exchange are currently the shares of BMW and Porsche....
Zalando (ZAL.DE) is down as much as 10 per cent, the most since June 2022, after Morgan Stanley downgraded the German retailer to 'equal-weight', saying that the European online apparel sector is one of the least attractive in the internet subsectors. A tough competitive environment and weak macro data are undermining growth and margin prospects, the analysts added.
Abu Dhabi National Oil Co. has formally informed Covestro AG (1COV.DE) that it is prepared to increase its takeover bid for the German chemical company to around €11.7 billion. This works out at €62 per share (€60 per share was previously proposed). Adnoc's due diligence may prove crucial in this matter. The company's shares are currently gaining nearly 4%.
Deutz (DEZ.DE) shares are gaining nearly 15% today, the most in 12 years, after German newspaper Welt am Sonntag reported that the company wants to return to the defence business.
Jefferies raised its recommendation on Hochtief (HOT.DE) shares to 'buy' from its previous 'hold' rating, saying that rising demand for global data centres could mark a 'step change' in the construction company's growth story. The target price was set at €124 versus €109 previously. The company's shares are gaining 8% today.
Other news coming from individual companies on the DAX index. Source: Bloomberg Financial LP
