- Positive sentiment on European exchanges; DAX futures gain more than 1%
- Continental (CON.DE) gains 7% after results showed improved operating profits
- German defense sector on upswing; Rheinmetall and Hensoldt shares gain nearly 4%
The mood in the European stock market is positive today, with U.S. indices posting gains, in observance of the Veteran's Day holiday. The session on Wall Street will open at standard hours; bond trading will be halted today. No significant macro releases are scheduled for today.
DE40 chart (M30 interval)
DAX (DE40) futures are recording a very successful session today. The main resistance level is now the levels between 19600 and 19700 points. Buying volume clearly prevails today, with the RSI climbing above 70, signaling overbought conditions.
Source: xStation5
Most companies on European exchanges are up today; the mining and metals sectors are performing poorly, with shares of leading miners BHP Billiton and Rio Tinto retreating. Source: xStation5
Continental on wave of improved profitability; sales lags
Continental AG's shares are on the rise after third-quarter results, with the company reporting a 36% increase in adjusted operating profit (EBIT) to €873 million. Investors liked the increase in EBIT margin to 8.9%, up from 6.3% last year.
- The automotive sector's adjusted EBIT margin rose to 4.2% from 2.8% a year earlier, thanks to efficiency measures and favorable price negotiations with auto manufacturers.
- The increase came despite a difficult market. Continental pointed out that it did so thanks to rigorous cost management and efficiency improvements, reinforced by a new pricing policy in the automotive division.
- Sales fell 4% y/y to €9.8 billion, compared to €10.2 billion in Q3 2023, but profitability in the automotive business improved despite a 4.7% y/y decline in sales (to €4.7 billion).
- Continental revised its annual forecasts, lowering the Group's expected sales to 39.5-42.0 billion euros, compared to the previously estimated 40.0-42.5 billion euros.However, this did not surprise the market
According to Continental, the winter tire business has had a successful start to the year, and sales profitability is satisfactory. The company is still considering spinning off its ContiTech business. The company expects profit growth in the automotive business, thanks to higher production and product volumes. ContiTech, Continental's industrial solutions division, faced challenges from weak demand in Europe and North America. It reported a 9.9% decline in sales, with revenues falling to €1.5 billion and a lower adjusted EBIT margin at 4.5%. The tire division reported solid results (sales up 1.9% y/y to €3.5 billion). Continental is currently expanding its Rayong plant in Thailand to meet high demand in the Asia-Pacific region.
Source: xStation5
Daily Summary – Wall Street Rally Driven by Powell’s Promises
TSMC Earnings Preview: Will the Key Semiconductor Supplier Surprise the Market?
US Open: American Indices Rally on Anticipated End of Fed Balance Sheet Reduction
Bank of America, Wells Fargo, and Morgan Stanley: Q3 2025 Earnings Overview
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
