- DAX continues second consecutive week of gains
- Carmakers' sector supports gains
- Nike results cast a shadow over sportswear companies
- Deutz announces acquisition of Blue Star Power Systems
The DAX is on track to end another week with gains. However, the German index has still failed to make up for the declines caused by the European Parliament election results, and gains continue to be capped by uncertainty in Europe caused by the first round of French elections. Nevertheless, the index is gaining 0.65% in today's session, and most sectors remain in upward territory today.
Support for the index today is provided by companies in the automotive sector, which have been a strong drag on the German market's quotations in recent weeks. Recovery can be seen in shares of Mercedes, BMW and Volkswagen.
Uncertainty was seen at the beginning of the session on the shares of sportswear manufacturers. Adidas and Puma started the session with declines after Nike's weak results foreshadowed deterioration in the segment. It appears that investors maintained a negative bias towards Puma, which is losing more than 2.6% today, while the mood for Adidas reversed and the company managed to return to the growth region.
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Strong performance of Consumer Discretionary sector combined with gains in Financials lets DAX remain its gains at the end of the second week in a row. Source: Bloomberg Finance L.P.
Mercedes-Benz is among the strongest gainers in today's session. We also see almost 2% gain on Bayer stock, which still remains in the strong downward trend started in March this year. Source: Bloomberg Finance L.P.
DAX contract (DE40) remains in consolidation at the end of the week. From broader perspective we see that the contract is still in the downward trend and still has problems with breaking out of resistant levels around 18394.4 pts. The French elections remain one of the reason putting pressure on European markets and if the uncertainty disappears, we might see potential break out towards 18400 pts level. However now the pressure remains strong and on top of that we see that the exponential moving average for 20-sessions (EMA20 - blue) is still traded below 50-sessions average (EMA50 - yellow), which usually means bearish signal. Source: xStation
Company news:
- Delivery Hero (DHER.DE) is losing more than 1.8% today, falling to its lowest level since early March this year. Investors' uncertainty was sparked by the early departure of Chief Financial Officer Emmanuel Thomassin, who was not expected to leave the company until September.
- TeamViewer (TMV.DE) is losing more than 9% today after the company fell victim to a cyberattack. The company said this Wednesday it detected unusual activity in its internal IT system. For the time being, the entire IT environment remains completely disconnected from the product environment, which means there is no sign of the attack's potential impact on the company's customers at this time. For now, it is not known who is behind the hack.
- Mercedes-Benz (MBG.DE) is gaining more than 2% today. The company announced an increase in its planned budget to improve combustion engine technology. The company also plans to facelift the engine of the flagship S-Class, which is expected to hit the market in mid-2026. Mercedes is also pushing back the vision of a complete shift to purely electric vehicles in the face of earlier announcements suggesting that the company will sell only electric cars by 2030. Currently, only an estimated 50% of vehicles sold will be electric.
- Deutz (DEZ.DE) maintains the previous week's gains, gaining more than 2.5% today. The company announced the acquisition of U.S. generator manufacturer Blue Star Power Systems. The acquisition is expected to help the company enter a strong growth market and expand the company's business model. Deutz is slowly approaching the breakout of this year's highs.
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