DE40: Good earnings and cautious optimism

European stock markets began Wednesday's session with clear gains, benefiting from positive sentiment from foreign markets and strong company results. Investors reacted optimistically to signals of economic improvement and more relaxed attitudes towards monetary policy. However, as the day progressed, enthusiasm gradually waned, and the main indices reduced some of the earlier gains, suggesting ongoing investor caution. EU50 contracts are up 0,6%. 
On the corporate level, attention was primarily drawn to the results of ASML and Louis Vuitton today. Both companies presented solid reports, indicating growth in key business segments, which supported European indices in the first part of the day. Additionally, yesterday's relatively dovish comments from Jerome Powell after the close of the American session eased some market tension, and the positive effect of these comments was fully discounted only this morning. The political crisis in France, which in recent weeks has caused uncertainty among investors, seems to be entering a phase of stabilization after the new prime minister managed to secure support from the Socialist Party.

Source: Bloomberg Finance Lp
In the German index, the materials and chemicals segment, as well as IT, lead the gains. Pharmaceuticals and retailers also maintain growth. Media and telecommunications companies are mainly losing.

Macroeconomic Data:

The latest consumer inflation data in Spain has been published. The CPI index rose annually to 3%, while monthly it increased by 0.2%, which turned out to be above market expectations. Such a level of inflation may be concerning from the perspective of price stability and further monetary policy of the European Central Bank, but at the same time, it signals that consumption remains relatively high despite increasing pressure in the labor market.

DE40 (D1)

Source: xStation5
The price is slowly sliding towards support around 24,350 points, marked by recent lows and the long-term trend line. Buyers were unable to defend the FIBO 23.6 level, indicating weak demand. Further declines suggest a likely correction towards strong support at the FIBO 50 level, where the EMA100 average is also located. If buyers want to regain the initiative, they must overcome resistance at 24550 points, which could potentially open the way to another ATH.

Company News:

LVMH (MC.FR) - The fashion and luxury goods giant is up 13% in today's session after publishing phenomenal results. The company beat analyst consensus regarding revenues, recording sales growth with a particular emphasis on a 2% increase in key markets - China.
ASML (ASML.NL) — The Dutch company, a cornerstone of the entire semiconductor market, also published very good results. It did not manage to beat expectations regarding EPS, but revenue estimates were exceeded. The appetite for semiconductors seems insatiable, generating orders worth 5.4 billion euros — which was above expectations. The company is up 3%.
BASF (BAS.DE) - The chemical company is up 1% after City raised the company's target price.
BMW (BMW.DE) — The German automotive giant received a downgraded rating from Jefferies, changing the recommendation to "hold," pointing to Mercedes as a better investment proposition. Movement in the company's valuation remains limited.
Stellantis (STELA.IT) — The automotive conglomerate announced 13 billion investments in the USA to bypass tariffs. The stock price is up over 2%.
Lufthansa (LHA.DE) — Morgan Stanley downgraded the company's recommendation to "underweight," and the company reacts with a price drop of about 0.5%.