On Wednesday, German stocks showed little movement, with the DAX index declining by 0.025 at the close, as UniCredit's decision to increase its stake in Commerzbank ($CBK) captured significant attention. Commerzbank's stock appreciated by 1.37% following the news that Italian bank UniCredit had elevated its stake in the German financial institution to 28% using new financial instruments, while it also sought approval from the European Central Bank to raise this interest to 29.9%.
UniCredit emphasized that this position is purely an investment strategy and does not affect its ongoing bid for Banco BPM. 'This move reinforces UniCredit's view that substantial value exists within Commerzbank that needs to be crystalized,' UniCredit stated in its press release. 'It reflects the belief in Germany, its businesses, and its communities, as well as the significance of a robust banking sector in driving Germany's economic growth.' In contrast, shares of Beiersdorf ($BEI) decreased by 1.40%, even after Barclays maintained an overweight rating, although the investment bank lowered its price target for the skincare manufacturer that recently introduced its latest anti-aging product, Epicelline.
'Execution at Beiersdorf is highly impressive, and the early indicators for Epicelline look promising,' Barclays noted. 'The recent derating of our European Consumer Staples coverage universe trims our relative PE driven Price Target to 143 euros from 150 euros despite our unchanged EPS.' Turning to economic news, the final annual inflation rate for the broader eurozone rose to 2.2% in November from 2% in October, which is below the initial estimate of 2.3%.
The area's core inflation rate stood at 2.7%, consistent with earlier flash readings. In the UK, the annual inflation rate also rose to 2.6% in November, up from 2.3% in October, aligning with market expectations. Core inflation reached 3.5%, rising from 3.3% a month prior but falling short of the consensus projection of 3.6%..