- DAX erases a good portion of early declines; DE40 contract loses less than 0.1%
- Weak sentiment around German automotive, Volkswagen (VOW1.DE) considers closing factories; Porsche AG (P911.DE) loses 4% and falls to new historic lows
- Strong session for Rheinmetall (RHM.DE) driven by renewed, bullish recommendation at Deutsche Bank
The mood around the European stock market is mixed today, but has improved, as Nvidia’s share price quotes reduced yesterday’s declines to less than 1% today. Investors await U.S. benefit claims data at 1:30 PM GMT and the release of flash Eurozone consumer sentiment, for November, at 3 PM GMT.
Volatility in stocks traded on the European trading floor. Weak sentiment around the automotive and fashion sectors. Novo Nordisk extends declining momentum and retreats another 1.5%; shares already losing 30% to peaks. Banks lose slightly. The oil and gas sector is gaining. Source: xStation5
DE40 (D1 chart)
The DAX has tested the 50- and 100-session exponential moving averages (orange and black colors on the chart) several times since November 2023. Currently, the stock has settled below the EMA100, but by the long lower shadows of the candles it is clear that the market is trying to ‘pick’ the decline. The last two sessions have brought positive buying volume, but it is still not equivalent to the previous two, indicating net selling.
Source: xStation5
Company charts of RHM.DE , P911.DE
Analysts at Deutsche Bank raised their recommendation for Rheinmetall to ‘Buy’ and set a target price, at €700 per share, which would imply about 15% upside from current levels. The German conglomerate is a major beneficiary of rising armaments and munitions spending in Europe.
Source: xStation5
Porsche shares are testing the lower range of the declining price channel today and are losing nearly 55% from historical highs. Bloomberg indicated that Volskwagen may be considering closing and selling the Osnabrück plant, where Porsche Boxter and Cayman models are assembled.
Source: xStation5
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