DE40: German DAX continues gains, SAP lower and Commerzbank to begin talks with UniCredit

• German DAX opened at record levels
• SAP is 1% lower after news of significant employee discontent 
• Commerzbank AG is set to begin talks today with UniCredit

General market situation:

European markets are heading for a mixed start today. The Austrian AUT20 leads, up 0.7%, with the Italian index 0.1% higher. The German DAX is trading slightly lower, while the French CAC40 is down 0.1%. Lower-than-expected inflation data from France and Spain might give investors food for thought as to whether the ECB will decide to accelerate the pace of rate cuts..

Volatility is currently observed in the broader European market. Source: xStation

The German DE40 index is trading at  all-time-high levels after more than 1.9% gain yesterday. The current question is whether the DAX will be able to remain at this level. The first support is located at the previous high of 19198.8. The next key support may be the mid-July peak at 18,861. Breaking those two levels would open the door for bears to test the 23.6% support or even the 50- and 100-day SMAs. Currently, oscillators are giving bulls ground for further upside, with the MACD increasing and the RSI consolidating near oversold levels. However they are approaching oversold levels which might make investors cautious. Source: xStation

News

• SAP SE (SAP.DE) is facing significant employee discontent in Germany, according to an internal survey. The percentage of German employees with "full trust" in the executive board has fallen to 38%, the lowest in at least three years. This comes amid a restructuring plan announced in January that aims to cut or retrain up to 10,000 employees. Despite the internal challenges, SAP's stock has surged to a record high this year, up 47% year-to-date.
• European Central Bank (ECB) executive Board member Isabel Schnabel has expressed concerns about the euro-zone economy. In a recent presentation, Schnabel stated that the "euro-area economy is stagnating" and that there are "increasing signs of softening" in the labor market. However, she also noted that disinflation remains on track and that inflation expectations of firms and households have come down significantly.
• Commerzbank AG (CBK.DE) and UniCredit are set to begin talks today, following UniCredit's recent increase in its stake in the German bank. Incoming Commerzbank CEO Bettina Orlopp stated that the two banks would "exchange views" but emphasized that the speed of synergies and risks needed to be considered. Commerzbank's board has unanimously supported the bank's current strategy, expecting higher returns on tangible equity and increased payouts to shareholders than previously anticipated.

Other news coming from individual DAX index companies. Source: Bloomberg Financial LP