DE30: DAX climbs to local highs!

• Markets gain at the start of the week

• German manufacturing data surprises on the downside

• Jungheinrich (JUN3.DE) surprises with better quarterly results

• Helene von Roeder new CFO of Merck

• Federal government to cut electricity prices for industry by 6 cents per kWh

The first session on the European markets this week brings better sentiment among investors, who are eagerly buying equities on the back of a wave of Friday's session on Wall Street and a good Asian session today. Investors' attention is primarily focused on data from Europe, in particular Industrial Production readings from Germany and Sentix sentiment from the Eurozone. 

German Industrial Production came in worse than expected, falling -3.4% m/m against expectations of a -1.5% m/m decline and a previous increase of 2.0% m/m. There is no reaction to the euro as this is heavily lagged data for March. 

On an annual basis, we have a reading in line with expectations at 1.8% y/y with a previous reading of 0.7%. Looking at the data above, we see that industrial production has been flat since 2021 and we have recently experienced a rebound, which has however been reduced. A sizable drop was scored by the construction sector.

The mood in Europe during Monday's trading session is relatively positive. Source: xStation 5

News: 

• The shares of Jungheinrich (JUN3.DE) are recording gains during today's session following the publication of better-than-expected first quarter results. Investors were particularly pleased by the higher-than-expected Ebit of €120.1 million (forecast: €108.7 million). The company's revenue beat analyst consensus by 5.7%.  The company's shares are currently trading up more than 1%. 

• The former CTO of real estate conglomerate Vonovia (VNA.DE), Ms Helene von Roeder has been appointed as the new CFO and member of the Executive Board of Merck (MRK.DE). von Roeder will take up her new position as of 1 July. Merck shares are currently trading close to 1.1 per cent down, while Vonovia shares are down more than 2 per cent. 

• As reported by Germany's Ministry of Economic Affairs, the government intends to cut electricity prices for industry by 6 cents per kWh to help energy-intensive industries affected by the downturn. The solution is expected to cost the federal budget between €25 billion and €30 billion and will last until 2030. The CEO of Volkswagen AG (VOW1.DE) commented that such a solution would have a positive impact on Germany's competitive strength and increase the attractiveness of the national industrial sector. 

Changes in institutional holdings in individual companies of the DAX index (last session's data). Source: Bloomberg

Major percentage changes and information from individual companies in the DAX index. Source: Bloomberg

DE30 chart

Futures based on the German DAX index (DE30) are trading higher today and are once again testing the region of resistance levels set by recent local peaks (zone just above 16,000 points). Source: xStation 5