DE40: Commerzbank shares tumble after takeover announcement 🚨

• Commerzbank in key support zone after takeover announcement
• Breentag raises target price for Siemens Energy
• DAX breaks 50-day EMA

Sentiment on the German stock market is mixed today, despite the fact that we see relatively large price movements in many companies. The leading topic today is Commerzbank, which is losing almost 6% after the chances of the bank being taken over by the Italian group UniCredit decreased.

Sentiment on the European stock market is mixed today. The semiconductor and fashion sectors are doing relatively well. Slightly larger declines are visible today in the pharmaceutical sector. Source: xStation5

Among the companies from the DAX index, the largest increases are currently occurring in Siemens and Adidas. On the other hand, Commerzbank's shares are recording almost 6.5% declines. Source: Bloomberg Finance L.P.

DE40 (D1 interval)

DAX broke above the 50-day exponential moving average (blue line on the chart) and tested another important resistance point, which was the local top of the consolidation zone of the session from the beginning of the second half of November. From a technical point of view, DE40 seems to maintain a general uptrend until the 100-day line (purple line) is broken on high volume, so it is worth watching now whether this index will be able to stay above this zone permanently and whether it will be able to close today's trade above the 50-day EMA. If such a scenario were to occur, it could mean an increase in the chances for the general continuation of the upward trend. On the other hand, staying between the previously mentioned exponentials could encourage the bears to break them and initiate a deeper downward correction.

Source: xStation5

Corporate News

The leader of the declines in today's German cash session is Commerzbank (CBK.DE). UniCredit SpA CEO Andrea Orcel signaled that taking over Commerzbank AG is not his current priority after launching a takeover bid in his home market. The proposed takeover of domestic rival Banco BPM SpA for around 10 billion euros reduces the "need for closure on the other side," Orcel said in a conference call regarding Commerzbank.

The stock is down 6% today and is trading at the support level of its 200-day exponential moving average (golden line on the chart). Source: xStation

Volkswagen AG (VOW1.DE) will not be able to complete its restructuring without closing plants, Thomas Schaefer, head of the company's passenger car brand, told Welt am Sonntag newspaper.

The Berenberg analyst raised the target for Siemens Energy AG (ENR.DE) to €70 from €35 and maintained a buy rating. The new PT represents a 45% increase from the last closing price.