DE40: DAX reignites bullish upturn after the US election 💡

• European markets resume euphoric gains after US elections
• Relatively good sentiment is seen primarily in the stocks of companies operating in the metals and mining industries. The situation is similar for automotive companies
• Among the companies in the DAX index, Daimler, Heidelberg Materials and Rheinmetall stood out today. Fresenius and Vonovia lose the most

Sentiment in the German stock market is good today and stands out against Europe, where gains are somewhat smaller. Markets are resuming their euphoria following Donald Trump's U.S. presidential election win and now market attention is turning to the FOMC's decision on interest rates. It is widely believed that the Fed will cut rates by 25 basis points today, nevertheless, what the market may be most interested in are the comments of Jerome Powell, who will comment on the decision at 7:30 pm GMT (decision at 7 pm GMT).

Sentiment in the European stock market is mostly good today. Relatively good sentiment is seen primarily in the stocks of companies operating in the metals and mining sectors. The situation is similar for automotive companies. Source: xStation5

Among DAX index companies, Daimler, Heidelberg Materials and Rheinmetall stand out today. Fresenius and Vonovia are losing the most. Source: Bloomberg Finance L.P.

DE40 (D1 interval)

The DAX (DE40) stock appears to be following a technical correction scenario bounded by the 50-day exponential moving average (blue curve), and if the conditions for it are met, a rebound to the zone of historical peaks is not out of the question. On the other hand, however, a breakout below this zone may initiate a further downward correction, which may be limited by the 100-day EMA (purple curve).

Source: xStation5

News

• The German defense industry sees Donald Trump's return to the White House boosting military spending in Europe and adding to an already huge increase in orders. This week's U.S. election results coincided with third-quarter reports from Rheinmetall AG (RHM.DE) and Hensoldt AG, which showed a surge in orders for armored vehicles, munitions and air defense systems. With Trump's election victory, Europe will face growing calls to build up its defenses and reduce its dependence on the US.

• Sources familiar with the matter report that Elliott Investment Management has amassed a sizable stake in RWE AG (RWE.DE) and is urging the German company's board to consider buying back its own shares, driving the company's share price up 4%.

• Daimler Truck (DTG.DE) shares gain 5.7% after adjusted operating profit for Q3 came in better than analysts' expectations. Adjusted operating profit came in at €1.19 billion, -12% y/y, against estimates of €1.13 billion. Revenue came in at €13.14 billion, -5.2% y/y, versus estimates of €12.98 billion.