General market situation:
European stock prices have plummeted after China announced the introduction of retaliatory tariffs on the US at a rate of 34%, threatening that the global tariff war will reach an even larger scale. It should be remembered that the market is still waiting for the response of the European Union, which could directly hit American BigTech by imposing a digital tax. All indices in Europe are currently reaching multi-month lows.
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Distribution of today's rates of return for European companies. Source: xStation
The German DE40 index is losing 3.9% intraday today and is trying to defend above the key technical support point, set by the 200-day EMA (golden line on the chart). The key element in the analysis of further potential index behavior may be the further behavior of demand and supply for the current zone (staying above or going below the zone, which indicated a transition to a bear market). Source: xStation
News:
French President Emmanuel Macron has called on European companies to halt spending in the US in response to President Donald Trump’s retaliatory tariffs on the EU.
rance and Germany are pushing for a stronger response to US President Donald Trump’s tariff measures, including on US technology and services, to strengthen the EU’s negotiating position (Digital Services Tax).
RATING UPGRADES:
- ABN Amro GDR raised to outperform at RBC; PT 23 euros
- ASML raised to outperform at Grupo Santander; PT 850 euros
- Danone raised to overweight at Morgan Stanley; PT 80 euros
- Norsk Hydro raised to maintain at SEB Equities; PT 58 crowns
RATING DOWNGRADES:
- Generali lowered to equal weight at Morgan Stanley; PT 33.80 euros
- Leonardo lowered to neutral at Citi; PT 48.40 euros
- Nestle downgraded to underweight at Morgan Stanley; PT 79 Swiss francs
- Qiagen downgraded to neutral at Redburn; PT 41 euros
- Swedbank downgraded to hold at HSBC; PT 230 kroner
NEW RECOMMENDATIONS:
- Finnair rated new underweight at Barclays; PT 2.80 euros
Other news from DAX companies. Source: Bloomberg Financial LP
