DE40: German DAX holds breath before FOMC decision, BMW with updated recommendation and Commerzbank shares sale💡

• German DAX suspended ahead of FOMC
• Citi analysts raised recommendation for BMW
• German Ministry of Finance confirmed plans to sell entire Commerzbank stake

General market situation: European markets will be tense today in anticipation of the FOMC decision. The German DAX is currently down 0.1%. The British FTSE 100 is giving up 0.5%. At the same time, the French CAC40 is losing 0.3%. The DAX remains above a key support point, marked by the 23.6% Fibonacci retracement. Investors' attention will be almost entirely focused on the FOMC decision today. Earlier data on the US housing market and oil inventories may provide clues.

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

The German DE40 index is at yesterday's levels. At the same time, this is the third session with very little price change, which may indicate the prospect of a larger move soon. For bulls, resistance may be the mid-July peak at 18,861. Breaking through it would allow testing of previous highs. Bears, in turn, after passing through the 23.6% Fibonacci retracement, may test the 100 and 50-day SMAs. Currently, oscillators indicate trend exhaustion. RSI is consolidating in the neutral zone, with MACD close to a bullish signal. Information flowing from the US will remain significant for the market.

News: 

Commerzbank AG (CBK.DE) shares are gaining investors' attention after the German Ministry of Finance confirmed plans to sell its entire stake in the bank, despite UniCredit SpA's recent move. The ministry, led by Christian Lindner of the FDP party, aims to sell the shares at the best possible price, even if it means UniCredit could acquire more shares. However, the decision to sell further requires unanimous approval from a committee comprising representatives from various government bodies, including Chancellor Olaf Scholz's office. The German government committed to a 90-day lock-up period on selling more Commerzbank shares after the latest transaction with UniCredit. Currently, the government remains the largest shareholder in the bank with a 12% stake.

BMW AG (BMW.DE) shares are noting an increase after Citi analysts upgraded the company's recommendation from "Sell" to "Neutral," setting a target price of 74 euros. Harald Hendrikse, a Citi analyst, justified the change in stance by stating that current expectations for BMW are very low, and the current share valuation is too low to justify maintaining a sell recommendation.

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