Mixed sentiment on the German trading floor

• Mixed sentiment on the German trading floor

• The European Commission does not expect Nord Stream 1 to resume operations

Today's trading session on European markets brings mixed sentiment for major benchmarks. The German DE30 gains 0.07%, the French FRA40 falls 0.1%, and the Polish W20 loses 0.5%.

Eurozone inflation turned out to be relatively in line with analysts' predictions. Month-on-month HICP inflation came in at 0.8%, covering the growth rate of May. Core inflation (excluding food and energy prices) was 0.2% m/m (0.5% last month). In annual terms, core inflation was 3.7% (previously 3.8%). Headline inflation rose to 8.6% y/y against last reading of 8.1%. There's really a lot going on in the euro today, thanks to Reuters, which reported that ECB members are discussing whether to raise the interest rate by 25 or 50 basis points when they meet this week (Thursday).

The Wall Street Journal reported that the European Commission does not expect the Nord Stream 1 gas pipeline to resume operations after maintenance work falls due on Thursday. Reuters reported earlier that Gazprom had conveyed that it could not guarantee further gas supplies due to extraordinary circumstances.

DE30 index price chart, H4 interval. The benchmark of German blue chips is not experiencing major fluctuations at the moment and remains close to yesterday's closing levels. From a technical point of view, the main resistance in the short term remains the psychological level of 13,000 points. We can consider the 100- and 50-period exponential moving averages (purple and blue curves, respectively) as zones of local support all the time. Source: xStation 5

 Company news:

• Utility companies are doing particularly well today. RWE (RWE.DE) gains 2.8%, E.ON SE (EOAN.DE) is up 2.1%.

• The shares of Swiss company Novartis (NOVN.CH) are trading up moderately today after confirming earnings forecasts for the year. Sales and operating profit results are expected to rise in the single-digit percentage range.

Analyst's action:

• Oddo BHF maintained its recommendation for Deutsche Telekom (DTE.DE) shares at "outperform." Target price at €23 (22% higher than previous target price). 

• United Internet AG (UTDI.DE) was downgraded to "neutral" from "outperform" by Oddo BHF. The target price increased to €30 per share (up 15% from the last target price).

The largest percentage changes of companies included in the DAX index. Source: Bloomberg

The most active stocks in the DAX index (DE30). Source: Bloomberg