DE40: DAX in zone of all-time highs; Monte dei Paschi di Siena makes Mediobanca buyout offer 🏛️

• European stocks make slight gains to end the week
• Better PMIs from Europe support the EURUSD exchange rate 
• HSBC raises rating on Carl Zeis Meditec
• Burberry up nearly 12% amid smaller sales decline
• Monte dei Paschi di Siena has made a €13.3 billion buyout offer for all shares in the Mediobanca merchant bank

European stock indices traded higher during Friday's session. The DAX is currently gaining 0.12% intraday while France's CAC40, added 0.73% over the same period. Investors' attention turns today to the news of corporate PMI data for January.

Volatility currently seen in the European market. Companies representing the luxury goods, automotive, metallurgy and Big Pharma sectors, in particular Novo Nordisk, stand out from the broad background. Source: xStation

The German DE40 index is losing its previous bullish momentum today, although the scale of the pullback is not large enough to negate the overall trend prevailing on the instrument. The most important support for the index invariably remains the 50-day EMA (blue curve on the chart) and the recent peak broken out by the index in the 20,500-point zone. Technically, the DE40 continues to maintain a stable upward trend all the time. Source: xStation

News

Shares of Carl Zeis Meditec (AFX.DE) are gaining nearly 7% after HSBC bank raised its recommendation on the company's stock to a “buy” rating with a target price of €54.

Burberry (BRBY.UK) shares are gaining nearly 12% today, after investors welcomed signs of improving demand for the company's products. The company reported a smaller-than-expected 4% drop in third-quarter sales, helped by a stronger holiday season in the US. Analysts had expected a 12% decline in Burberry's third quarter comparable sales.

Monte dei Paschi di Siena (BMPS.IT) has made a €13.3 billion offer to buy back all of the shares of commercial bank Mediobanca (MB.IT), just over seven years after Italy rescued the Tuscan bank to avert a broader sector crisis. MPS is offering 23 of its own shares for every 10 Mediobanca shares tendered, equivalent to a 5% premium over Thursday's closing price. Investors are concerned that the relatively “bargain” offer could hurt MPS' balance sheet.  

Other news from major German companies. Source: Bloomberg Financial LP