- German DAX under pressure, but keeps zones close to ATH
- SAP loses 3% after announcement on initiated investigation
- JPMorgan boosts sentiment around Air France-KLM
Overall market situation:
Wednesday's session on European stock markets brings mixed sentiment among investors. Germany's DAX is currently losing 0.20%. Britain's FTSE 100 is adding 0.37%. At the same time, France's CAC40 is losing 0.19%. Investors' attention today turns to corporate news, especially in the context of the SAP scandal and JP Morgan's recommendation on Air France shares.
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Volatility currently observed in the broad European market. Source: xStation
Germany's benchmark DE40 is trading nearly 0.50% lower during Wednesday's session. Despite the observed declines, the futures-based Index remains all the time within its historical peaks. It seems that the key support points of the broad uptrend remain the zones of recent peaks and the 50-day EMA (blue curve on the chart). Source: xStation
News:
German software maker SAP SE (SAP.DE) is among the companies being investigated by U.S. officials for potential conspiracy and overcharging of government agencies. Justice Department lawyers are investigating whether SAP - which makes accounting, human resources, supply chain and human resources software, supply chain and others illegally conspired with Carahsoft (a dominant player in the government technology procurement market. Last year it ranked 45th on Forbes' list of the largest private companies in the U.S., with estimated revenues of $11 billion) to fix the sales price for the U.S. military and other parts of the government. On Tuesday, Carahsoft's offices were searched by FBI agents and military investigators. Consulting giant Accenture (ACN.US) is also implicated in the investigation, according to government documents.
SAP shares are trading 3% lower today. Source: xStation
Air France-KLM (AF.FR) shares surged during Wednesday's trading on the Paris Stock Exchange, as JPMorgan doubled its recommendation for the airline from “Underweight” to “Overweight.” In a sector analysis, JPMorgan sees a possible “turning point” in the performance of the Franco-Dutch carrier, whose share price has fallen 40% this year to historic lows. Its target price - set at 12.5 euros - indicates a potential upside of about 40% (relative to yesterday's closing levels). The bank expects Air France to report operating profit (Ebit) forecasts 12% higher than the average consensus estimate for 2025.
Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP
