- European indices in mixed mood at the end of the first half of Wednesday's session
- Nvidia rebound boosts sentiment around European tech companies
- Better FedEx results drive Deutsche Post shares
Overall market situation:
Wednesday's session on European stock markets is marked by moderate gains. The German DAX is currently gaining nearly 0.28% on the spot market. At the same time, the French CAC40 is losing 0.43% and the UK FTSE 100 is gaining 0.17%. By contrast, the Swedish OMXS30 and the Polish WIG20 are leading the gains in Europe. Yesterday's rebound in Nvidia share prices and a good close on the Nasdaq index today strengthens individual tech companies (they are also the leaders of the intraday gains).
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Volatility currently observed in the DAX index. Source: Bloomberg Financial LP
Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is up nearly 0.70% during today's session. The index continues to hold the structure of the downtrend initiated on 16 May. The continuation of the downtrend led to a test of the historically important support level in the zone of the 100-day exponential moving average (purple curve on the chart, it still remains a key support point). Locally, the most important resistance all the time remains the zone of the 50-day exponential moving average (blue curve). The DE40 index is currently testing this zone and attempting to break above its upper limit (upper shadow of the intraday candle from 24 June). Source: xStation
Interestingly, the test of the zones of the previously mentioned 100-day EMA brought a clear activation on the volume side. This may indicate that we have seen a lot of institutional investor activation in this zone. Source: xStation 5
News:
Deutsche Post (DHL.DE) shares are gaining more than 2% today on the back of FedEx's (FDX.US) reporting of improved fourth fiscal quarter results and the announcement of a USD 2.5 billion share buyback. Shareholders were pleased to see signs of the company's reorganisation plan and cost-cutting being introduced.
Sanofi SA (SAN.FR) has called for initial bids by mid-July against a $20 billion stake in its consumer health division. Advent International and France's PAI Partners are currently considered the main stakeholders in the buyout.
Yesterday's rebound in Nvidia (NVDA.US) shares and the broad Nasdaq index is improving sentiment among technology stocks from Europe. SAP (SAP.DE) shares are currently up 2.8% and Infineon Technologies (IFX.DE) shares are up nearly 2%.
However, shares of automotive companies are trading under pressure today. Germany's Volkswagen Group (VOW1.DE) will invest up to $5 billion in US electric vehicle manufacturer Rivian (RIVN.US) to share electric vehicle architecture and software. Rivian's shares were up around 40% at the close of trading on Wall Street.
Other news coming out of individual DAX index companies. Source: Bloomberg Financial LP
