German shares are expected to open little changed on Tuesday after a weaker start to the week. One hour before the open, the X-Dax, an off-exchange indicator for the DAX, showed a gain of 0.05% at 25,454 points. The benchmark index had fallen 0.5% on Monday.
Oil prices remained elevated overnight. Michael Pfister, a currency strategist at Commerzbank, wrote that the advance of the Houthis in Yemen has brought the level of $110 a barrel into focus. The development increases attention on the US Federal Reserve's rate decision expected on Wednesday, where investors are anticipating a tightening of monetary policy.
The recovery in artificial-intelligence and semiconductor stocks in Asia has largely failed to materialize after a sell-off driven by growing concerns that the pace of AI development could slow. Confidence in the technology and its potential remains damaged, and European investors may not yet consider the issue closed.
Cewe, a photo services provider, plans to buy back up to 150,000 of its own shares for a total of up to €18 million. The repurchase would represent about 2% of the company's share capital. Its shares rose 1.3% in premarket trading on Tradegate compared with the Xetra closing price.
Engine maker Deutz intends to raise fresh capital through a capital increase. The Cologne-based company plans to issue new shares amounting to up to 10% of its share capital. Management said the proceeds would be used to strengthen financial flexibility with a view to future growth opportunities. Deutz shares fell 3.7% on Tradegate.
Schott Pharma shares gained 4.4% on Tradegate after JPMorgan began coverage of the stock with an Overweight rating. The specialist in the storage and administration of injectable medicines benefits from structural trends and its leading market position, and has the potential to increase earnings by 14% per year by 2029, analyst Philip Omnou said on Monday.
Evonik shares lost 3.5% on Tradegate after investment bank Morgan Stanley cut its rating on the specialty chemicals group from Overweight to Equal-weight.
