DAX: DE40 mixed despite positive sentiments in Europe📊Fraport shares at 6-year high

European stock markets are trading mostly higher today as investors welcome signs that the U.S. government shutdown could soon end and earnings season remains solid. In Germany, however, sentiment is mixed — Fraport (FRA.DE) shares are leading gains after strong quarterly results, while Lufthansa (LHA.DE) is also rising. On the macro front, German ZEW economic sentiment disappointed, falling month-over-month, contrary to expectations of improvement.

• ZEW Economic Sentiment Index (Oct): 38.5 (Forecast 41, Previous 39.3). Current Situation: -78.7 vs -78.2 forecast and -80.0 previous. The EUR/USD pair weakened slightly after the data release.
• Swiss stocks outperformed, with Richemont and Swatch Group rallying after reports suggesting the U.S. may lower import tariffs on Swiss goods.
• The Europe Stoxx 600 hit a two-week high, supported by strength in the telecom sector following Vodafone’s upbeat earnings. France’s CAC40 and the UK’s FTSE 100 both gained around 0.8%.

DE40 (D1)

The German DAX futures eased by nearly 0.4%, though the index has recovered strongly from the 23,300 level to around 24,100 points. Bulls will be watching the 24,200 resistance zone, marked by the 50-day EMA (orange).

Source: xStation5

Strong Fraport Results

Fraport shares climbed to their highest levels since summer 2019, rising about 9% after the company posted better-than-expected third-quarter EBITDA. Free cash flow improved significantly as major global airport investments neared completion.
Revenue came in slightly below expectations, but the company outperformed across all four divisions on profit metrics.

• Passenger traffic in October rose about 6%, while the 2025 passenger outlook (~63 million) remains aligned with market forecasts. Analysts noted a strong chance of Fraport beating its 2025 net profit guidance following the solid Q3 performance.
• The Frankfurt Airport operator reported adjusted Q3 2025 EBITDA of about €535 million, roughly 1–3% above company and Morgan Stanley estimates, helped by a €50 million pension refund and an €8 million utilities reimbursement in the Retail & Real Estate segment.
• The Aviation and Ground Handling divisions were top performers, exceeding revenue and cost expectations. International operations were mixed — Greece, Brazil, and Ljubljana outperformed, while the U.S. and Bulgaria lagged.
• Retail & Real Estate showed modest growth, with revenue at €145 million and spending per passenger up 1% year-on-year to €3.06, driven mainly by strong advertising results.
• Group EBITDA margin rose to 45.5% from 40.3% in the prior quarter. Aviation EBITDA increased 19% to €162 million, and Ground Handling improved its margin from 7% to 16%.
• Free cash flow strengthened despite €328 million in capital expenditure, supported by better working-capital management and lower financing costs.
• Fraport reaffirmed its full-year outlook, expecting free cash flow near breakeven and net debt in the €8.3–8.5 billion range (Morgan Stanley estimate: €8.4 billion).
• Passenger volumes rose 2.6% in Frankfurt and 3% across regional Greek airports. The winter flight schedule shows seat capacity growth of around 3% year-on-year, down slightly from September’s 5–6%.
• Morgan Stanley maintained an “equal-weight” rating with a €72 price target, calling the report a “small beat and solid cash flow.”

Source: xStation5