DE40: DAX remains in key technical zone 💡

• DAX drops 0.33% during Tuesday's session
• HSBC analysts downgrade Heidelberg Materials
• Goldman Sachs raises its recommendation for Aroundtown shares

General market situation:

Tuesday's session on European stock markets brings mixed investor sentiment. The German DAX is currently down 0.33%. The British FTSE 100 is down 0.6%. At the same time, the French CAC40 is adding 0.16%. The DAX is testing a key support point set by the 50-day EMA. Investors' attention is turning today to corporate news and the scheduled Harris-Trump debate in the US.

Volatility currently observed on the broad European market. Source: xStation

The German DE40 benchmark is trading close to 0.57% lower during Tuesday's session and is currently testing a key support level set by the 50-day EMA (blue line on the chart). Dynamic breakthrough of these zones could theoretically open the way for further declines towards the 100-day EMA and 200-day EMA (purple and gold curves on the chart, respectively). The key resistance point, however, remains the local peak in the 19,000 point zone. Source: xStation

News:

HSBC analysts have lowered their recommendations for Heidelberg Materials (HEI.DE) to a “neutral” rating from the previous “buy”. The target price has been set at EUR 109. The company's shares are currently losing 1.5%.

Goldman Sachs has raised its recommendation for Aroundtown (AT1.DE) shares to a “buy” rating. The target price has been set at EUR 2.90 per share. The company's shares are currently gaining over 9%.

The company's shares are trading at their highest levels since March 2023. Source: xStation

Shares of Spanish company Rovi (ROVI.ES) are down 5.5% after CVC fund was left the only bidder for the company. CVC is in advanced talks to buy a majority stake in the Spanish contract pharmaceutical company after other bidders pulled out. The deal could value the operation at more than €3 billion, below the €3.5 billion reference price reported earlier this year.

Strong financial results from Oracle (ORCL.US) yesterday are driving European IT companies today. SAP (SAP.DE) is currently up more than 1%. The US company’s data could signal that demand for artificial intelligence is continuing to drive cloud computing.

Other news from individual DAX companies. Source: Bloomberg Financial LP