DE30: DAX lower at the start of an important week

• DAX starts the week lower

• Germany's GDP surprises to the downside

• Daimler Truck takes stake in Deutz (DEZ.DE) 

Monday's trading session on markets from the Old Continent brings a deterioration in sentiment among the major stock indexes. The German DAX is recording declines today and continues to remain below the consolidation zone in the area of recent local peaks. We have a very interesting week ahead of us as far as the macro calendar is concerned, and it is not surprising that most of the market movements will precisely depend on the reaction to specific data. This week awaits us, among others: the Fed, BOE and ECB decisions, as well as the NFP report from the US!  

The report turned out to be a disappointment, with GDP growth of 0.5% YoY versus the expected 0.8% YoY. In quarterly terms, German growth fell by 0.2% QoQ (previously 0.0% QoQ).

Investor sentiment on the Old Continent deteriorated on Monday. Most companies are now trading down. Source: xStation 5

Company news and bank recommendations: 

• Shares of BMW (BMW.DE) were downgraded to "Hold" by Berenberg. Target price at 95 euros. 

• HeidelbergCement (HEI.DE) shares were upgraded to "Buy" by HSBC. Target price at 68 euros. 

• Brenntag (BNR.DE) rated "Overweight" by Morgan Stanley. Target price at 85 euros.

• Deutz (DEZ.DE) shares are seeing sizable rallies today on news of an investment in the company by Dailmer Truck. Daimler takes a 4% stake in the company and becomes the largest single shareholder in the stock. 

Companies currently trading the highest and key information from each. Source: Bloomberg

DE30 chart: 

DE30 futures are trading lower today. The instrument is still below consolidation near local peaks and close to the resistance set by the 78.6% Fibo retracement. Source: xStation 5