DE30: European equity markets extend morning rallies

• Indices in Europe extend morning gains

• ZEW index below expectations

• Market awaits President Lagarde's speech

Tuesday's trading session on the Old Continent brings strong gains for most stock market benchmarks. The mood was improved today mainly by reports from the US, in particular from the Treasury, which was reported to be looking into providing unlimited deposit guarantees (through the FDIC) if the banking crisis worsens. On the macro calendar for today, Lagarde's speech, Canada's CPI inflation reading and the US secondary market home sales report are mainly scheduled. 

The mood in Germany was spoiled by a much weaker-than-expected ZEW index reading. The ZEW said that international financial markets are under severe pressure. The assessment of profit development of banks and the insurance sector deteriorated significantly.

Germany, ZEW sentiment index for March. Actual: 13.0. Forecast: 15.0. Previously: 28,1

Current conditions: Actual: -46.5. Forecast: -44.3. Previously: -45.1

The mood in Europe during Tuesday's trading session is clearly bullish. Source: xStation 5

• South Carolina's governor signed a bill granting Volkswagen's sub-brand, Scout Motors, state incentives amounting to nearly US$1.29 billion to build a US$2 billion manufacturing plant for trucks and SUVs. The project is also expected to receive nearly $180bn in tax credits for job growth, officials added. VW Scout expects the project to create 4,000 jobs and produce up to 200,000 vehicles a year. The shares of Volkswagen (VOW1.DE) are gaining nearly 1.7% today.

• The shares of energy giant RWE (RWE.DE) are gaining more than 2% today following the publication of its annual results and the declaration of a higher dividend, as well as new investment prospects. The company intends to become even more involved in the renewable energy sector. This year, €4.4 billion is to be invested. The company has also raised its dividend to €1 per share, 11% more than last year. 

Results and forecasts for 2023. Source: RWE

• The board of directors of MTU Aero Engines (MTX.DE) has approved raising the dividend to €3.2 per share and will table the proposals for a final shareholder vote on 8 May. A year ago, the dividend was €1.1 per share. The shares are gaining nearly 3% today.

DE30 chart

The German DE30 extends the dynamic gains initiated in the second half of yesterday's European session. The benchmark is currently testing the key resistance set by the 78.6% Fibo elimination. Source: xStation 5