|Day's range||12,560.19 - 12,858.79|
|52-week range||8,255.65 - 13,795.24|
(Bloomberg) -- Germany’s flag carrier is being removed from the country’s benchmark stock index for the first time since the gauge’s inception more than three decades ago, after travel restrictions aimed at stemming the coronavirus pandemic sent the stock plunging.Deutsche Lufthansa AG will be replaced by real estate company Deutsche Wohnen AG in the DAX Index, Deutsche Boerse said in a statement Thursday night. The change will come into effect June 22.Shares in Lufthansa, which this week agreed to a 9 billion-euro ($10 billion) state bailout package, rose as much as 7.8% on Friday, paring their loss this year to 34% and giving the airline a market capitalization of about 5.2 billion euros. That makes it the 60th largest German company by market value, while the DAX is reserved for the country’s 30 biggest companies. Deutsche Wohnen rose as much as 3.4%.The first half has been a tumultuous one for the German carrier, with the pandemic all but halting its business. Its massive size -- with operations spanning from catering to maintenance -- meant it has bled cash faster than other airlines. The bailout will inflate Lufthansa’s debt and interest payments, and existing shareholdings will be diluted as the government takes a stake. The company said on Wednesday it will slash employee expenses and look at spinoffs to bolster cash flow.More Pessimism“Implications for Lufthansa’s equity value from the support package, on top of the existing net debt and pension liabilities, are weighing on sentiment,” Goodbody Stockbrokers analyst Nuala McMahon said by email before the announcement. There are also concerns about the corporate-travel market, which accounted for 50% of passenger revenue, and its strategy for leisure travel because of discount competition, she said.More than two-thirds of analysts covering the carrier recommend clients should sell the stock, while the average price target among those tracked by Bloomberg suggests a 34% drop, in contrast to a 7.7% gain expected for British Airways parent IAG SA. Lufthansa’s consensus recommendation -- a measure translating buy, hold and sell ratings into a number -- is also the third-worst for all companies in the Stoxx Europe 600 Index.The pessimism is mirrored by investor bets of a stock drop that are among the harshest in Europe. Short interest in the freely traded stock currently stands at 19%, according to IHS Markit data.Still, not everyone is as negative on the airline’s prospects. “The company appears to be able to exceed our expectations in terms of liquidity preservation,” Bankhaus Metzler analyst Guido Hoymann wrote in a note Thursday, raising his recommendation to hold from sell. While visibility on the recovery of travel is still low, the management measures announced “seem totally plausible,” and capital expenditure will be reduced significantly, he wrote.Here is how share prices of all companies that will be promoted to the country’s main indexes or demoted from them are moving on Friday.The next date for a regular review of the indexes is Sept. 3.(Adds share prices table)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Futures point to a testy start as the markets look ahead to U.S labor market numbers due out late in the session…
The ECB is in action later today and will influence the majors, as will the weekly jobless claims from the U.S. Will Lagarde deliver more support?
There’s been plenty of optimism this week on an economic rebound. Service sector PMIs and employment figures will provide further guidance.
The futures point to another positive open ahead of a busy day on the economic calendar. Service sector PMIs will need to impress…
(Bloomberg) -- European stocks rose to their highest level in almost three months, buoyed by optimism about economies reopening and stimulus measures.The Stoxx Europe 600 Index added 1.6% at the close, its sixth advance in seven days. The DAX Index jumped 3.8% as German markets reopened after a holiday and as Chancellor Angela Merkel seeks to broker a compromise on a second stimulus package. Deutsche Lufthansa AG rose 3.4% after the airline overcame most of the barriers to receiving a $10 billion government bailout.European equities have retraced more than half the decline from a selloff that began in February. Easing lockdowns and unprecedented stimulus measures are boosting sentiment, sending the Stoxx 600 toward its 100-day moving average for the first time since late February. Still, escalating U.S.-China tensions have tempered some gains recently.“So far, investors remain focused on global business reopening, the fact that the number of new Covid cases remains stable as economies restart operating and of course, the massive fiscal and monetary support from central banks and governments,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “The positive sentiment outweighs even a faltering phase-one deal between Beijing and Washington.”France’s CAC 40 Index climbed 2% even after the country’s finance minister said its economy will suffer a deeper recession than previously expected.Cyclicals were top performers on Tuesday, led by autos. Carmakers rallied after May sales figures from three of region’s biggest auto markets indicated the demand drop due to the Covid-19 pandemic is slowing.Tech shares rose 1.5%, erasing their 2020 losses. Along with health-care shares -- the only other sector in the green this year -- they have been the biggest beneficiaries from the Covid-19 fallout.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
It could be a choppy day ahead for the majors. A lack of economic data will bring U.S – China tensions and rioting in the U.S into focus.
Futures point to a positive start as the markets brush aside Trump’s Friday press conference. Expect geopolitics and today’s stats to influence, however.
It’s a busy week ahead. Central banks are in action and China will be in a retaliatory mood. Then there are the stats to begin tracking once more…
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The futures slide into the red ahead of the European open as the market looks ahead to Trump’s news conference later today.
Europe stocks rally on hopes that the European Union will unveil large stimulus package to reduce the economic fallout from the coronavirus pandemic.
Economic data from the Eurozone to take a back seat as hopes of an economic rebound point to a jump at the European open.
Mid-week market drivers with Dukascopy TV. We’ve got COVID-19 news and numbers, U.S – China tension, and optimism towards the economic.
Market jitters over China resurface following a 3rd consecutive day in the green for the DAX30… The ECB and Brussels will need to distract with positive news.
May.26 -- Howard Lerman, Yext Inc. chief executive officer, discusses how his tech company is working with the World Health Organization to provide accurate Covid-19-related information. He speaks on "Bloomberg Technology."
The futures point northwards, with optimism continuing to deliver support. Chatter from Beijing and Washington and economic data will be in focus, however.