European stock indexes started trading in the new week with gains. The DAX is now up 0.4% on an intraday basis while the UK's FTSE100 is losing 0.15%. France's CAC40 is doing very well, adding 0.5% against rising valuations of major fashion companies. In the afternoon, investors will learn PMI data from the US.
Markets are also awaiting a reading of CPI data from Germany for December, due at 1:00 p.m. GMT. Data from Hesse indicated a significant acceleration in CPI pressure to 2.7% y/y versus the last reading of 2.0% y/y.ย
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Volatility currently seen in the broader European market. Source: xStation
Germany's DE40 index has halted declines near an important support zone defined by the bumped historical peak from October this year. Moreover, this zone is oscillating around the 50-day EMA (blue curve on the chart). In the medium term, it is the reaction to these two zones that may determine whether the DE40 will maintain its overall upward trend. The most important support zone remains the historical peak at 20,500 points. ย Source: xStation
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The start of the new week in the financial markets presents a positive picture. European technology companies, especially those related to the semiconductor sector, which until recently was subjected to considerable downward pressure, are particularly positive. The shares of companies such as ASML (ASML.NL) and IFX (IFX.DE) are gaining 4.8% and 5.2%, respectively.
The high-tech sector is doing very well today. Source: xStationย
Similar sentiment is evident in the luxury goods sector. Hermes (RMS.FR) shares are rebounding 2.1%, while LVMH (MC.FR) shares are gaining 1.3%. The reason for the slightly better sentiment in the sector is the publication of slightly better-than-expected services PMI data from China, a key market for the sector.
Rolls-Royce (RR.UK) shares are losing nearly 3% after Citi downgraded its recommendation on the company's shares to a โneutralโ rating. According to the bankers, the currently expected growth is not sufficient to justify the company's current valuation.
Volkswagen (VOW1.DE) shares gain 1.75% after the automotive giant partnered with xPeng to create a network of car chargers in China.ย
