Earnings results for Deutsche Bank are less than impressive, and have served to keep a cap on most other European banks since early trade. A 98% drop in pre-tax profit for the quarter, to a meagre €18 million, is not something that will sit well with shareholders. The litigation reserves for the bank have risen to €4.1 billion, and until we get a clearer picture on the level of settlement needed to deal with the Libor scandal investigations we can expect a degree of aversion towards this particular bank and indeed the sector.
Infineon Technologies has recovered some of its poise today, having shed some 5.5% over the past week, and has taken the top spot with the share price adding 1.9%.
Following a clear uptrend since June 2012, the DAX index has been looking overbought for the past week, so a degree of profit-taking is probably inevitable. Support at 8930/50 has held, coinciding with the 100H moving average. Any breaches of this level should be contained to 8785. Any move through the 9044 levels will be likely to invite further upside.