DE40: DAX 's comeback to its historical highs?

• DAX is paving its way back to its historical highs
• Infineon Technologies with a new partnership
• SAP acquires american data adoption leader

On Friday markets are generally in a good mood. Uncertainty caused by the awaited U.S. economic data and ECB rate cut is gradually diminishing. European markets are mostly in the green: German DAX trades 0.13% higher, Spanish IBX35 adds 0.33%, Polish WIG20 gains 0.66% and British FTSE 100 remains flat. French CAC40 and Italian FTSE MIB, on the other hand, are in the red, both losing around 0.2%.

Current situation on the European stock market. Source: xStation5

DE40

Even though DAX experienced a significant drop after ECB lowered interest rates, it managed to end yesterday’s session on a high note. Today, the German index continues its climb, showing strength and staying above 20-period EMA (light purple). Current price level around 18600 has been a significant resistance point in recent weeks. Breaking above this zone could signal a comeback to the historical highs.

Source: xStation5

Company news:

• Volkswagen (VOW1.DE): automaker has reached an agreement with a Belgian labor union to resume operations at the Audi factory, halted due to low demand for the electric Audi Q8 e-tron. Volkswagen shares are up 2.38% today.

• Commerzbank (CBK.DE): President of the Bundesbank emphasized the need for strong banks to finance German ventures. While Joachim Nagel did not comment directly on Commerzbank, he noted that the essence of acquisitions is to create a competitive institution with an efficient business model. The bank's shares continue their bullish rally, with a 3.1% intraday increase.

• Fresenius (FRE.DE): JPMorgan has upgraded its recommendation for the company (from neutral to overweight) in light of management changes and ongoing restructuring. Fresenius shares are currently up 3.3%.

• Infineon Technologies (INF.DE): German semiconductor manufacturer announced a collaboration with ZF on AI software for autonomous vehicles. The company's shares are up 0.3%.

• SAP (SAP.DE): software producer announced the acquisition of WalkMe, the leading digital adoption platform (DAP), listed on the Nasdaq. Despite this, SAP shares are down slightly (-0.12%).

• Henkel (HEN3.DE): Jefferies has downgraded its recommendation for Henkel from buy to hold. The pressure on the company's shares is caused by a discrepancy between the expected results for the third quarter of 2024 and Jefferies' forecasts (3.6% vs. forecast: 1.9%). The company's shares have lost 0.37% following the recommendation.