Even though DAX and EURO STOXX 50 showed moderate growth, the Symrise AG securities dropped down by more than 8% and remain under pressure up the date. The sales are based upon an unexpectedly weak Q4 report, according to which the company’s lost 126 mln EUR in the last quarter of 2022.

If you have a look at the rest of the securities, the EURO STOXX 50 securities have been more volatile. Early in the session, when the European one started on Monday we also see predominantly bullish mood. Vonovia SE, Infineon Technologies AG and Zalando SE are in the top-3 of the DAX index. There have not been considerable sales, except for Symrise AG. In the meantime Enel S.p.A., Intesa Sanpaolo S.p.A. and Air Liquide S.A. started their day with losses of more than 1%.

Follow up on the ECB comments as it is being discussed to change their monetary policy. Further comments may apply pressure to the EU based companies’ securities.

Bond market:

After moderate growth of the German and French 10-year yields on Friday, we do not see further growth today. Let’s remember, that this instrument’s value growth suggests lower enthusiasm level with risk related assets. To put it short, an increase in profitability blocks the demand. That’s why the absence of enthusiasm would lead to further strengthening of the key fund indices.

This would depend on the level of precaution the investors would take against the aggressive Fed policy.

Oil market

Oil tries to hold the achieved positions. Let’s remember that China’s already started their long term lunar year celebrations. On the 5^th of February the restrictions on Russian diesel exportation to the EU would take place, this additionally supports the oil quotes. Most likely, this event may produce some serious support, but it is a bullish fundamental factor at the same time.

One should also consider the upcoming business activity report in the manufacture and services sectors, with one of the world’s largest economies of the monetary block. The growth of the business activity sector would indicate the EU market recovery, which is a bullish signal for the oil as well.

The US oil reserves report would barely influence the oil. At the same time, let’s not forget about the pace at which the strategical reserves are recovering. An increase is a bullish factor for the market, it suggests growth in the internal demand from the part of the US government.