DE40: Markets remain indecisive heading into the end of the week

• Bayer shares gained ground after the European Medicines Agency's Committee for Medicinal Products for Human Use recommended a label extension for its Eylea 8 milligram injection solution

• Continental shares declined following Jefferies analyst Michael Aspinall's downgrade to hold from buy, setting a price target of €80 that implies a 4.1% increase from the last price

• Adidas shares gained after DZ Bank analyst Thomas Maul upgraded the sportswear giant to buy from hold, establishing a price target of €261 that implies a 20% increase from the last price

European markets closed predominantly lower on Friday, with cautious sentiment prevailing across the region as investors stepped back from the previous session's optimism. The pan-European EU50 index declined 0.27% to 5,442.6, while Germany's DE40 fell 0.29% to 24,024.6, reflecting broader concerns about economic momentum amid ongoing uncertainty over monetary policy and growth prospects.

Switzerland's SUI20 led the declines with a 0.45% drop to 12,370, while Austria's AUT20 retreated 0.23% to 4,317. France's FRA40 declined 0.16% to 7,878.4, and the Netherlands' NED25 slipped 0.10% to 933.08, with Italy's ITA40 showing resilience with only a modest 0.06% decline to 40,369.

Bucking the negative trend, Spain's SPA35 emerged as the session's standout performer, surging 1.14% to 14,302, while Poland's W20 added 0.39% to 2,800.6. The UK's UK100 managed a modest 0.09% gain to 8,755.0, supported by sector-specific strength. The VSTOXX volatility index climbed 0.82% to 18.53, reflecting heightened market uncertainty and suggesting investors are positioning for potential turbulence ahead.

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

The German DE40 Index is retesting its previous high after making ATH yesterday, yet it remains above the 23.6% Fibonacci retracement level and the 50-day SMA—both acting as key support zones. Bulls will look to maintain momentum above recent highs to confirm the breakout, while bears may attempt to drive the index below those levels, with the 50-day SMA as a near-term target. The RSI is easing just below overbought territory, indicating a potential cooldown in bullish momentum. Meanwhile, the MACD is beginning to narrow, signaling caution as buying pressure may be losing steam. Source: xStation

Market News

• Bayer shares gained ground after the European Medicines Agency's Committee for Medicinal Products for Human Use recommended a label extension for its Eylea 8 milligram injection solution; the positive opinion, based on findings from the Pulsar and Photon clinical trials, allows expanded treatment intervals of up to six months for neovascular age-related macular degeneration and diabetic macular edema, with the German pharmaceutical giant expecting a European Commission decision in the coming weeks.

• Continental shares declined following Jefferies analyst Michael Aspinall's downgrade to hold from buy, setting a price target of €80 that implies a 4.1% increase from the last price; the downgrade comes as the German tire manufacturer showcases digital transformation initiatives at TOC Europe 2025, including its ContiConnect tire management system and TerminalMaster tire solutions aimed at sustainable port operations, with the company targeting carbon-neutral production by 2040.

• Adidas shares gained after DZ Bank analyst Thomas Maul upgraded the sportswear giant to buy from hold, establishing a price target of €261 that implies a 20% increase from the last price; the upgrade reflects renewed confidence in the German company's strategic direction and market positioning.

• Deutsche Bank shares moved higher as the lender proceeds with a significant risk transfer (SRT) deal linked to a $3 billion corporate loan portfolio, selling approximately $240 million in notes through its Craft program; the transaction, covering loans in North America and Europe, supports the bank's plan to reduce risk-weighted assets by €25-30 billion by year-end, with CEO Christian Sewing noting strong demand for SRT instruments despite recent market volatility.

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