- European with sizable gains during Tuesday's trading
- PMI data points to the strength of the European services sector
- SAP shares its quarterly results
General market situation:
European stocks are experiencing significant gains during Tuesday's trading session. The German DAX is currently up 1.25%. The CAC40 is up 0.77%, and the Euro Stoxx is up 1.11%. The improved sentiment follows the recent sell-off in major global markets. Investors in Germany are reacting to strong PMI data for March and the earnings report from SAP. After the session, Kering (KER.FR), a fashion industry giant, will release its earnings report.
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Create account Try a demo Download mobile app Download mobile appThe positive performance of the German services sector suggests that Germany may be emerging from recession, and the economic outlook may be brightening. The April PMI data for Germany, particularly in the services sector, exceeded expectations, which also improved the overall PMI reports for the eurozone. However, the manufacturing sector was a negative surprise.
Germany, preliminary PMI for April.
- Manufacturing. Current: 42.2. Expected: 42.9. Previous: 41.9.
- Services. Current: 53.3. Expected: 50.5. Previous: 50.1.
France, preliminary PMI for April.
- Manufacturing. Current: 44.9. Expected: 46.9. Previous: 46.2.
- Services. Current: 50.5. Expected: 49.0. Previous: 48.3.
European companies listed during Tuesday's trading session are currently experiencing gains. Source: xStation 5
The German benchmark DE40 is currently up 0.62% during today's session. The index recently experienced a sharp decline below the 50-day EMA (blue line). Interestingly, yesterday's intraday candle shows a significant wick, which may indicate an activation of demand in this area. The aforementioned EMA may continue to serve as a key short-term support level, while the local resistance remains around the 18,800 point level. Source: xStation 5
Company News:
Shares of Aixtron (AIXA.DE) are up nearly 4% today following a raised recommendation for the company's stock by Hauck&Aufhauser. The new rating is "buy" with a target price of €29.5 per share.
Investor attention is focused today on SAP (SAP.DE), which has released its quarterly earnings report. Unfortunately, the company's results did not meet the upper or lower range of expectations. For the three-month period ending on March 31, SAP reported an adjusted earnings per share of €0.81, which is lower than the consensus estimate of €1.06 per share. Revenues amounted to €8.04 billion, also below analysts' expectations of €8.63 billion.
However, the sentiment around the company was lifted by comments from Citi analysts, who stated that the updates were promising compared to high expectations. According to the bank, the report illustrates sustained business momentum. The company maintained its forecasts for 2024, predicting cloud revenues between €17.0 billion and €17.3 billion and adjusted operating profit between €7.6 billion and €7.9 billion. The company declared a dividend of €2.20 per share for the fiscal year 2023, representing a 7% increase compared to the dividend paid for the previous fiscal year.
Other company news for individual stocks in the DAX index. Source: Bloomberg Finance L.P.
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