• German DAX pulls back from all-time highs
  • Investors await US JOLTS data release and BoC interest rate decision
  • Nvidia sell-off yesterday puts pressure on European semiconductor stocks

Overall market situation:

Wednesday's session on European stock markets brings a pullback to most stock indices. The German DAX is currently down 0.93% intraday. At the same time, the French CAC40 is down 1.02%. The DAX is still close to its all-time highs, but the dynamic uptrend is weakening. Investors' attention today turns to the further reaction to yesterday's pullback in the semiconductor sector. Furthermore, investors will react to the BoC decision and US JOLTS data.

Volatility currently observed in the broad European market. Source: xStation

The German benchmark DE40 is quoted during Wednesday's session nearly 0.33% lower, but it still maintains a dynamic upward trend. The index broke above the key resistance level set by the 50-day EMA (blue line on the chart) and the local peaks of the consolidation zone from the last few sessions. The dynamic breakout of these zones theoretically opened the way for further increases towards the historical peaks at 19,000 points. At the moment, however, the index has negated the breakout of this zone and we are observing a pullback. It is worth bearing in mind that the scale of the last rebound is large, which may lead to investors booking some profits. In this respect, the previously mentioned 50-day EMA and 100-day EMA (purple line on the chart) may be a relatively important support zone. Source: xStation

News:

Commerzbank (CBK.DE) shares are down 1.6% on reports that the German government plans to reduce its stake in the lender by 3-5%. Analysts surveyed by Bloomberg said the move should come as little surprise, given factors including recent share price gains and improved profitability at the bank, while the German state has always indicated it intends to reduce its stake in the future.

Airtel Africa (AAF.UK) is down nearly 7% today after JP Morgan downgraded the stock to “neutral” and set a target price of 121.3 pence. The investment bank cited falling EBITDA margins as the main reason for the cut.

The semiconductor sell-off yesterday is also having a major impact on Europe. Infineon (IFX.DE) is down 4% today, while Aixtron (AIXA.DE) is down 3.6%.

Other news from individual DAX companies. Source: Bloomberg Financial LP