- European stock market indices trade lower
- DE30 bounce off mid-term support
- Hapag-Lloyd slumps on UBS recommendation
European stock market indices trade slightly lower today. Major blue chips indices from Western Europe are down 0.2-0.5% at press time. UK FTSE 100 is an exception as it gains 0.5%, supported by weak GBP. Release of flash PMI indices for September this morning did not trigger major moves on the markets. While disappointing French PMIs triggered pullback on the EUR market, those moves were partially retracted following release of better-than-expected German data. Nevertheless, manufacturing and services sector indices from Germany remain under expansion-contraction threshold (50 points).
Germany, flash PMIs for September
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Open account Try demo Download mobile app Download mobile app- Manufacturing: 39.8 vs 39.5 expected (39.1 previously)
- Services: 49.8 vs 47.1 expected (47.3 previously)
- Composite: 46.2 vs 44.7 expected (44.6 previously)
Source: xStation5
DE30 slumped yesterday, along with other stock market indices, and reached an important support zone in the 15,650 pts area. This zone is marked with the previous price reaction as well as 200-session moving average (purple line), and more importantly it has been acting as a floor for index moves for almost half a year. Bulls' camp in the area is strong as no downside breakout was delivered and the index is attempting to launch a recovery move today. Near-term levels to watch should this recovery extend are 15,900 pts and 16,050 pts. The latter is especially important as it has halted two previous upward impulses and acts as the upper limit of the current short-term trading range. A break above the 16,050 pts area could trigger an around 400 points upward move, should the breakout be executed in a textbook manner.
Company News
Aurubis (NDA.DE), one of the world's largest copper recyclers and non-ferrous metal suppliers, is trading higher today. This comes amid a jump in iron ore prices, driven by hopes for more stimulus in China. Restocking of steel mills is also expected to bolster demand.
Deutsche Boerse (DB1.DE) said in a statement that it will hold at least 93.97% stake in SimCorp after an extended offer period ended on September 19, 2023. Offer is expected to settle next Friday (September 29, 2023) and Deutsche Boerse plans to complete compulsory acquisition of remaining minority shareholders as soon as possible.
Analysts' actions
- Jungheinrich (JUN3.DE) rated "overweight" at Barclays. Price target set at €36.00
- MTU Aero Engines (MTX.DE) upgraded to "buy" at Citi. Price target set at €217.00
- Allianz (ALV.DE) upgraded to "overweight" at JPMorgan. Price target set at €270.00
- Hochtief (HOT.DE) downgraded to "hold" at Societe Generale. Price target set at €103.60
- KION Group (KGX.DE) rated "equal-weight" at Barclays. Price target set at €37.00
- Hapag-Lloyd (HLAG.DE) rated "sell" at UBS. Price target set at €130.00
Hapag-Lloyd (HLAG.DE) slumps over 7% following a 'sell' recommendation from UBS. Stock broke below the lower limit of a recent trading range and the textbook range of the breakout hints at a possibility of a drop to as low as €163.00. Source: xStation5
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