DE40: Old Continent under pressure from reported quarterly earnings

• Profit-taking moves from the US to Europe
• DAX (DE40) trading flat ahead of Federal Reserve decision
• Novo Nordisk (NOVOB.DK) trading on limited upside despite strong Q4 2023 results

Today's market sentiment is mostly downbeat ahead of the highly anticipated Jerome Powell conference and Fed decision (07:00 pm GMT and 07:30 pm GMT respectively). Profit-taking continues on Wall Street, putting equities in Europe under pressure. Higher-than-forecast financial results from Novo Nordisk (NOVOB.DK) failed to push the Euro Stoxx 50 index higher, and the German DAX is trading virtually flat, losing just 0.1%. Publications of US technology companies proved strong (Google, Microsoft), but not strong enough to support a further dynamic rally on the Nasdaq100. Published macro readings from the economies of France and Germany pointed to a further slowdown in inflation and retail sales, illustrating a still weaker economy on the Old Continent.

European companies listed during Wednesday's trading session are currently trading at mixed levels. US ADRs point to a lower opening of the US cash session. Source: xStation 5

The German benchmark DE40 is losing more than 0.1% during today's session. The benchmark tested the resistance zone set by historical peaks. Source: xStation 5

News:

SAP (SAP.DE) announced that it will reduce the price for existing customers to migrate to its cloud platform by up to 50% this year.

Continental (CON.DE) confirms that investigations by European antitrust authorities have been taking place at the company's German subsidiary since 30 January, according to an emailed statement. The company's shares are trading down slightly today. 

Source: xStation 

Samsung reported its fourth consecutive fall in profits after a long-awaited recovery in demand for chips and electronics. The company booked a 35 per cent year-on-year decline in profits. European companies in sectors linked to Samsung's organic business are trading down today. 

ASML shares are currently losing 0.9 per cent, ASMI shares are down 1.63 per cent and Aixtron shares are down nearly 0.2 per cent. Source: xStation5

Analyst recommendations

• Citi downgraded its recommendation on Deutsche Bank shares to a "neutral" rating. Target price set at €13.4.
• HSBC upgraded shares of TAG Immobilien to a "buy" rating. Target price set at €14.5.