Porsche IPO propels DE30

• DAX quotes to recover some of recent declines

• Volkswagen passes Porsche IPO

The second trading session this week brings an improvement in sentiment on the trading floors of European equities. As for macro data, investors' attention today is focused on the PMI and ISM index readings for services in the US.

Data:

In the morning, investors learned about German industrial orders data, which fell more than expected. The RBA raised interest rates in line with analysts' expectations to 2.35%.

Source: xStation 5

The swaps market is currently pricing in a 68% chance of a 75 basis point rate hike by the ECB at its meeting next week. Source: Bloomberg

DE30 index chart, D1 interval. The benchmark German blue chips are trading up today and heading towards 13,000 points. Source: xStation 5

Tuesday's German trading session brings moderate gains in most sectors of the DAX index. Discretionary goods companies (improving sentiment) are performing particularly poorly.

Shares of Volkswagen (VOW1.DE) and Porsche SE (PAH3.DE) gained after Volkswagen's Supervisory Board and Executive Board passed a resolution on the IPO of its Porsche AG subsidiary. Volkswagen set late September/early October as the date for the share issue, but made it contingent on further developments in the capital market.

Siemens Energy (ENR.DE) will replace HelloFresh (HFG.DE) in the DAX blue chip index as of September 19.

The dynamic sell-off continues today with Uniper (UN01.DE) shares currently losing more than 5%.

Analyst action:

• Adidas AG (ADS.DE) downgraded to "hold" from "buy." Target price lowered from €255 to €160.

• Shares of Commerzbank AG (CBK.DE) raised to €10 from €9.8 by Citigroup.

• Delivery Hero (DHER.DE) shares raised to "overweight" from "equal-weight." Target price at €73 (previously €62).

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

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