DAX 30 and European Equities Defy Expectations to Show Strong Gains on Monday

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European equities and indices have reacted well to yesterday’s Italian referendum result, lost by now former-prime minister Matteo Renzi, despite pre-open expectations for a drop. The euro has weakened, though losses have been contained, indicating that markets had already priced in Renzi losing the vote. How the referendum result will impact Italy’s banking sector and the Eurozone, remains to be seen, but as was the case following Brexit and Donald Trump’s election as U.S. president in June and November respectively, markets have refused to panic.


The DAX 30 is currently sitting on a 1.43% gain into the afternoon and seems to be relatively stable, having traded with a tight range since an early climb over the session’s opening hour. However, the day’s biggest faller has been Commerzbank, which has exposure to Italy’s banking system, down 1.53%. Deutsche Bank, which has greater exposure to the U.S. economy is up 1.21%.

Industrial gases and engineering company Linde is showing a loss of 0.61%. U.S. peer Praxair last week reinitiated merger talks, which were called off in September on the two companies’ failure to agree on a number of points. Deutsche Boerse is down 0.5%, while the remaining loss currently being shown by one of the index’s constituents is from Prosiebensat 1 Media, a mass media group, down 1.14%.

Amongst the day’s biggest winners so far is BMW, which has gained 2.48%. Fellow carmakers Daimler and Volkswagen are also performing well, up 2,32% and 2.06% respectively. BMW have recently been pushing ahead with plans for its own car-sharing service and expanding testing of self-driving cars. The company is targeting 2021 as the launch date of its first fully-autonomous vehicle. Tyre-maker Continental is also 2.2% up today.

Adidas is the day’s biggest gainer so far, up 2.49%. The company saw a sharp 15%+ correction in late October and early November and investors may see the current price as an opportunity to buy into the company. Infineon Technologies, the semiconductor manufacturer, is up 2%, Siemens 2.5% and ThyssenKrupp, expected to shortly merge with Tata Steel, 2.58%.

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