DE30 gains despite weak PMI data

• DE30 records moderate gains

• European markets react to PMI data and Black Sea ports opening

Market sentiment improved slightly on European trading floors during the last trading session. The German DE30 is gaining 0.5%, the French FRA40 is up 0.4%, and the Polish W20 is trading up 0.64%.

Investor attention today is focused on PMI index readings from Europe and the US, which performed very poorly. PMI indices for services and industry in France, Germany and the Eurozone as a whole indicated a decline in activity in these sectors of the economy. Germany's PMI for the service sector came in at just 49.2 points, against expectations of 51.2 points and the previous reading of 52.4 points. The index for industry also fell significantly short of forecasts, coming in at 49.2 points against estimates of 50.6 points (previously 52 points). Another important factor creating today's stock market movements is the unblocking of Black Sea ports scheduled for today. Representatives from Russia and Ukraine are scheduled to meet in Turkey to sign an agreement allowing grain exports. 

DE30 index chart, H4 interval. Dax holds above the support set by the upper limit of the downtrend and is now breaking out above the 200-period exponential moving average (golden curve). We can now consider the local peak at 13,430 points as local support. Source: xStation 5

News:

• HelloFresh (HFG.DE) shares continue to sell off after lowering forecasts for 2022. The company's future results are expected to be weighed down by galloping inflation, deteriorating consumer sentiment or the war in Ukraine. The company lowered its revenue growth forecast for this year on a constant-currency basis to 18-23% from a previously forecast range of 20%-26%. 

• Deutsche Bank (DBK.DE) has agreed to pay a €7.01 million fine in a money laundering case linked to Bashar al-Assad's family. Frankfurt prosecutors confirmed the completion of an investigation that found the bank failed to file 701 reports of suspicious activity. 

• The German government agrees to take a 30% stake in Uniper, and state-owned bank KfW increases its credit line to the company to €9 billion. The total value of the bailout package is estimated at 15 billion euros.

Analyst's action:

• Société Générale raised its recommendation for Hannover Rueck (HNR.DE) shares to "buy" from its previous rating of "hold."

The largest percentage changes of companies included in the DAX index. Source: Bloomberg

The most active stocks in the DAX index (DE30). Source: Bloomberg