- German DAX retreats from historical highs
- Jefferies and Barclays modify recommendations on Deutsche Bank and Draegerwerk
General market situation:
Tuesday's session on European stock markets brings a small retreat on most stock indices. The German DAX is currently losing 0.35% intraday. At the same time, the French CAC40 is down 0.25%. The DAX is still close to its all-time highs. Investors' attention is turning today to the ISM PMI data for the US industry. After the holiday break, trading on Wall Street will resume, so investors can expect greater volatility compared to yesterday's session.
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Volatility currently observed on the broad European market. Source: xStation
The German DE40 benchmark is trading nearly 0.52% lower during Tuesday's session, but it is still maintaining a dynamic upward trend. The index broke above the key resistance level set by the 50-day EMA (blue line on the chart) and the local peaks of the consolidation zone from the last few sessions. The dynamic breakout of these zones theoretically paved the way for further increases towards the historical peaks at 19,000 points. At the moment, however, the index has negated the breakout of this zone and we are observing a pullback. It is worth bearing in mind that the scale of the last rebound is large, which may lead to investors booking some profits. In this respect, the previously mentioned 50-day EMA and 100-day EMA (purple line on the chart) may be a relatively important support zone. Source: xStation
News:
Barclays raised its recommendations for Deutsche Bank (DBK.DE) shares to “overweight”. Target price at EUR 22.
Partners Group (PGHN.CH) shares are currently down 8.5% after the company reported worse-than-expected first-half results. The Swiss private equity firm reported a nearly 8% year-on-year drop in net profit to CHF508 million. Revenue fell 7% to CHF977 million, partly due to a 39% drop in performance fees, despite a 4% increase in management fees.
Jefferies has upgraded Draegerwerk (DRW3.DE) shares to a “hold” rating. The target price is €47.
Luxury stocks are currently performing relatively well, primarily due to the strong response to Watches of Switzerland (WOSG.UK). The company said the worst is behind the luxury watch market as the company has seen a stabilization in demand for luxury watches in its stores. The company added that it will likely meet its 2025 forecasts.
Other news from individual DAX companies. Source: Bloomberg Financial LP
