On Tuesday, the German stock market was trading slightly lower after an initially positive market open. The DAX opened 0.50% higher at 16850 points but soon began to fall, losing its early gains within the first hour. Despite a positive beginning to the week, the DAX struggled to maintain momentum. Investors' attention is on Wall Street and the earning season. According to Commerzbank, the US stock exchanges have overcome their shaky start to the year, with market participants now more optimistic about the US economy and increasingly focused on the rapidly evolving field of artificial intelligence.
Source: xStation 5
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Germany and Europe business news:
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French farmers expanded their protests after a meeting of agricultural associations with Prime Minister Gabriel Attal on Monday evening. The protest from France's farmers revolves around regulations, the income situation, energy costs and, as in Germany, the price of agricultural diesel. In southern areas, the water supply to companies is increasingly becoming a problem due to climate change.
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The transport ministers of the federal states decided in a special conference on Monday that the price of 49 euros per month for the Germany ticket should remain stable throughout 2024.
Company News:
Lanxess (LXS.DE), a specialty chemicals company, and Ibutec Advanced Materials, a development and production service provider, are collaborating to develop innovative iron oxides for producing cathode material for LFP (lithium/iron/phosphate) batteries. This collaboration aims to enhance the performance of LFP batteries and establish a sustainable, largely European value chain. Currently, such raw materials are predominantly sourced from China.
The US analyst firm Bernstein Research has given Carl Zeiss Meditec (AFX.DE) an "underperform" rating with a target price of 76 euros. Carl Zeiss Meditec is a leader in terms of innovation, but the road ahead is challenging as the high investments are required for market entry in the USA. The medical technology provider is also facing strong headwinds from the Chinese market, which accounts for around a quarter of sales.
Lufthansa's (LHA.DE) experienced a positive impact in early Tuesday following encouraging guidance from its US partner, United Airlines. United Airlines' better-than-expected profit outlook for the 2024 financial year, announced after the previous day's stock market close, initially boosted investor sentiment.
HelloFresh (HFG.DE), previously one of the weakest MDAX stocks, showed signs of recovery on Tuesday with its shares rising 6.0% to 12.20 euros, following an upgrade to “Overweight” by Morgan Stanley. Analyst Luke Holbrook highlighted the overlooked potential of HelloFresh's ready meals brand, Factor, which he believes justifies the company's full market valuation. The stock, popularized during the pandemic for its meal kits, has lost up to 86% of its value since its peak in November 2021.
Source: xStation 5
