- Benchmark in Europe loses in the second part of the session
- Companies react to the collapse of the SVB
- FedEx figures drive logistics companies higher
The final session of this week in Europe started in relatively good spirits, helped by yesterday’s rally in the Wall Streetwhich was fueled by the announcement that big banks like Morgan Stanley and JP Morgan are interested in a recapitalization of First Republic Bank, another bank in the US that is threatened with collapse. However, the second part of today’s trading session saw an abrupt reversal after it was announced that the SVB filed for Chapter 11 bankruptcy. The revision of the inflation data from the euro zone brought no significant change compared to the first value.
Sentiment in Europe deteriorated in the last trading session of the week, although the start of trading was under the relative dominance of the demand side. Source: xStation5 by XTB
The shares of Symrise (SY1.DE) are performing well relative to other companies in the German market due to Goldman Sachs’ upgraded recommendation. The investment bank downgrades the company’s shares from its previous rating of “neutral” to “buy” with a price target of EUR 117.
European logistics and freight companies are benefiting from better than expected results FedEx and raising the company’s earnings forecasts. The Deutsche Post (DPW.DE) gains 0.52% and AP Maersk (MAERSKA.DK) increases by over 1.1%.
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Despite the upbeat sentiment in the banking sector early in the session due to interest from major US banks in recapitalizing failing banks First Republic Bank (FRC.US) sentiment deteriorated significantly following the new announcement. SVB-Bank has filed for Chapter 11 bankruptcy proceedings. The provisions of Chapter 11 allow a company to continue in the event of bankruptcy while it is being reorganized under court supervision.
Development of institutional participations in individual companies of the DAX (data from last session). Source: Bloomberg
Biggest percentage changes and information from individual companies in DAX. Source: Bloomberg
DAX / DE30 analysis:
Sentiment on the German stock market deteriorated during the second part of the last trading session of this week. The DE30 contracts attempted to test the resistance set by the 78.6% retracement but to no avail. Currently, the quotations are falling towards yesterday’s opening level. Source: xStation5 by XTB
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