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Dax erases gains from early session
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Infineon set to move production to the US
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Investors' attention focuses on the US CPI reading
Tuesday's trading session on European markets brings mixed sentiment among investors. The German DE30 negates the gains made at the start of the day and is currently descending into the zone of yesterday's broken levels of weekly consolidation. Investors' attention today is focused on the US CPI inflation reading, which will be released at 01:30 pm BST and will be the last indication before tomorrow's FOMC decision.
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Open account Try demo Download mobile app Download mobile appThe mood in Europe during Tuesday's trading session has been mostly positive. Very good sentiment was dominated by the luxury goods, semiconductor, metals and automotive sectors. Source: xStation 5
German DE30 futures have broken out above the consolidation structure set last week. At this point, however, today's impulse extension of yesterday's breakout has been negated. Source: xStation 5
News:
Duerr (DUE.DE) has agreed to buy back BBS Automation from EQT (EQT.SE) at an enterprise value of between €440 million and €480 million. BBS expects full-year revenues of around €300 million in 2023. Duerr expects revenues from the automation segment to be around €500 million in 2024. The transaction itself is expected to be finalised at the end of Q3 or the beginning of Q4 this year and will be financed with cash and a loan.
Duerr (DUE.DE) share price chart, D1 interval. The share price is currently testing the resistance of the 50-day exponential moving average (blue curve). Moreover, today's session saw the breakout from the 38.2% Fibo elimination zone of the downward wave initiated from July 2021. Source: xStation 5
Morgan Stanley, in its latest note on the defence sector, commented that it is taking a cautious approach when it comes to these companies and is becoming highly selective in further recommendations. According to MS, BAE (BA.UK) is the most interesting company at the moment when it comes to the comparator group and has issued an 'overweight' rating on it. Thales (HO.FR) shares are also rated 'overweight'. On the other hand, Dassault Aviation (AM.FR) was rated 'equal-weight'. Hensoldt (HAG.DE) is rated "underweight". Overall, the Bank prefers companies with diversified exposure and unaffordable market expectations.
German semiconductor manufacturer Infineon (IFX.DE), to the knowledge of the Financial Times, is considering moving more of its production to the US, which is mainly related to The Inflation Reduction Act introduced in the US. The shares are currently gaining more than 1.2%.
Infineon Technologies (IFX.DE) share price chart, D1 interval. The company's shares today tested the resistance set by the 78.6% Fibo elimination of the downward wave initiated in October 2021.Source: xStation 5
Changes in institutional holdings in individual companies of the DAX index (data from the last session). Source: Bloomberg
Major percentage changes and information from individual companies in the DAX index. Source: Bloomberg
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