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European companies under pressure with moderate declines
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Markets await Big Tech earnings reports and central bank decisions
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German PMIs cast doubt on ECB's hawkish rhetoric
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Julius Baer (BAER.CH) and Vodafone (VOD.UK) gain after quarterly results
The first European trading session of the week brings quite a bit of volatility, but price deviations are not progressing in the same direction. In general, stock markets are awaiting tomorrow's publication of the results of the US Big Tech companies (Microsoft and Alphabet), as well as the subsequent decisions of the central banks.
Today's session is primarily focused on weak PMI readings from Germany and a sell-off in Spain, where uncertainty surrounding the results of the snap general election lifted the SPA35 more than 1% lower on a daily basis.
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Open account Try demo Download mobile app Download mobile appThe euro is losing against other currencies on a daily basis. Germany's manufacturing PMI index comes in at 38.8 points against an expected 41 points, indicating an even deeper slump in the sector. The PMI index for services falls at 52 points against an expectation of 53.1 points and the previous level of 54.1 points.
"Heatmap" of volatility in the FX market today's session at present. Source: xStation
The mood in Europe during Monday's trading session has been relatively negative. At the moment, the worst performing stocks are those of personal goods, clothing/fashion companies and banks. Source: xStation 5
German DE30 contracts are losing nearly 0.13% during today's session. The index is still trading in a narrow trading range located near the local peaks. Source: xStation 5
News:
Deutz (DEZ.DE) shares are currently losing more than 3.87% against HSBC's downgraded recommendation to 'hold'. The target price was set by HSBC at €6 per share.
Source: xStation
Among companies from the Old Continent, Bank Julius Baer and Vodafone (VOD.UK) stand out, gaining on the wave of reported results. On the other hand, Rynair's (RYAAY.US) comments about the uncertain business backdrop during the winter period (passenger growth forecasts were lowered) is triggering declines in the aviation sector.
Vodafone reported quarterly revenue growth of 3.7% year-on-year (+2.9% forecast), but a shrinking customer base in Germany (Vodafone's largest market, -1.3%) highlighted the challenge the company faces. Overall, however, it is worth remembering that the company's restructuring programme is underway following changes to its board of directors.
Source: xStation 5
Julius Baer (BAER.CH), Switzerland's second-largest bank, said it had acquired more than 9.2 billion Swiss francs of new client assets following the near collapse of rival Credit Suisse and its acquisition by UBS in March. The bank's net profit after the first-half period rose 18% year-on-year. Interest earnings on loans to customers rose by more than 146 per cent to 841 million francs in the last six months.
The largest percentage changes in individual companies of the DAX index. Source: Bloomberg
Information from individual companies in the DAX index. Source: Bloomberg
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