- Old Continent under pressure at the end of the week
- At 14:30 NFP report
- Eurozone HICP inflation falls slightly lower
- BofA withdraws "buy" recommendation: for Siemens shares
General market situation:
This week's last trading session on European markets is not very optimistic. All indices of the Old Continent are currently recording intraday declines. For the most part, this also applies to European companies (preview below). The focus of investors' attention today is inflation data from the Eurozone and the US labor market. On an annual basis, the HICP data came in slightly below expectations.
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European companies listed during Friday's trading session are mostly losing at the moment. Source: xStation 5
The German benchmark DE40 is losing nearly 0.47% during today's session. The index is still trading near the local peaks of July 2023, which were broken in December. At the moment, it is this zone and the 16,600-point area that could be a key checkpoint for both the buyers' and sellers' sides. Source: xStation 5
News:
The downgrade by investment house Keefe Bruyette & Woods weighed on Deutsche Bank (DBK.DE) shares, which lost 1.2% on Friday. According to KBW's expert, the bank's shares rose sufficiently - not least because of the prospect of additional dividend payments to shareholders. Nevertheless, free cash flow remains weak, and the return on equity target seems overly optimistic.
Siemens (SIE.DE) shares are also trading under downward pressure. Measured by operating profit (EBITDA), Siemens shares are priced higher than the sector for the first time in three years, according to Bank of America analysts, who withdrew their "buy" recommendation for the company's shares.
Source: xStation
Analyst recommendations:
* Redcare Pharmacy (RDC.DE): Berenberg raised its recommendation on the company's shares to a "buy" rating. Target price at €190.
* Deutsche Bank (DBK.DE): KBW downgraded its recommendation for the company's shares to an "underperform" rating. Target price at €12.50.
