- The DE30 recovers some of the drops after the initial losses
- The consumer price index in Germany is falling as expected
- Frankfurt passenger record in June increases Fraport AG (FRA.DE) stake
Trading on the Old Continent’s floor is currently characterized by falling valuations on most benchmarks. Investors’ attention will focus today on the June data on inflation in the US (at 14:30 GMT), the BoC decision to rate hike (16:00) and DOE report (16:30).
The CPI index stood at 7.6% year on year, in line with analysts’ forecasts, and fell from 7.9% recorded in May. The HICP index fell to 8.2% YoY from 8.7%, also beating the market consensus. Fuel rebates and the introduction of € 9 road tickets gave German consumers some respite from high inflation in June. The government relief should also ease the price pressure in the summer months. However, experts warn that inflation rates are likely to rise again after these measures expire in September as fuel and local transport become more expensive again.
Amid record high inflation in the monetary union, the European Central Bank (ECB) intends to raise its main interest rate by 25 basis points next week for the first time since 2011.
DE30 in the H4 chart. The leading German index is currently struggling to maintain support around 12,755 points. The 50 EMA (blue line) and the upper bound of the 1: 1 structure can be viewed as local resistance levels. Source: xStation 5
Actions Fraport AG (FRA.DE) today they are over 3.5% higher due to several factors. First, the number of passengers at Frankfurt Airport in June hit a new record since the outbreak of the coronavirus pandemic. The valuation of the shares was also supported by a buy recommendation from Berenberg Bank. The bank previously rated the company’s stock as “hold” and the target price was set at EUR 56.
Broker shares FlatexDEGIRO (FTK.DE) today fell by more than 2%. Despite the good results for the first half of the year, the deterioration in sentiment was due to a slowdown in customer acquisition and a lower number of transactions. The adjusted EBITDA was EUR 112.8mn against expected EUR 87mn, in line with preliminary results. Sales amounted to EUR 209.6 million compared to the forecast of EUR 207 million. The company recorded 38.1 million transactions in the first half of the year compared to 53 million a year earlier (-28.1%). Consolidated net income is expected to exceed the sum for the second half of 2021 (EUR 51.6 million). Analysts Morgan Stanley and Jefferies see a decline in the number of transactions per client and a decline in the number of new clients. It is expected 282.5 thousand. customers during the six months, compared to 538 thousand. last year.
Actions Gerresheimer (GXI.DE) an increase of nearly 4% after the publication of the results for the second quarter. The packaging maker saw adjusted EBITDA grow 5.1 percent to EUR 90 million in the second quarter, while sales grew by 13 percent to EUR 445 million. As a result, management reaffirmed its full-year targets of at least 10% organic revenue growth and high one-digit growth in Adjusted EBITDA.
- Citi Ratings Alliance (ALV.DE) to “neutral” and the target price was set at 190.6 EUR.
- Hanover Re (HNR.DE) increased to “buy” by Citi, the target price was set at EUR 162.4.
The largest percentage changes of companies included in DE30. Source: Bloomberg
Most active stocks in DE30. Source: Bloomberg
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