DE40: DAX Pulls Back After Hitting All-Time High, Bayer Gains on Strong Earnings

• Bayer AG shares jumped 11% after the company's first-quarter earnings beat expectations

• Munich Re reported a decline in first-quarter net profit to €1.09 billion from €2.12 billion in the same period last year

• Hannover Re shares fell 3.2%, making it the second-worst performer on the Stoxx 600 Insurance Index, after the German reinsurer posted what JPMorgan described as "not a particularly pretty set of numbers

European markets are showing a mixed performance today, with most indices trading in negative territory.  Among the European indices, Spain's SPA35 is the standout performer, rising 0.66% to 13753, while Italy's ITA40 also manages to stay in positive territory with a modest gain of 0.03% to 39497.

The remaining European markets are all trading lower. Switzerland's SUI20 and Austria's AUT20 are both down -0.46%, trading at 12210 and 4284 respectively. The Netherlands' NED25 has declined -0.69% to 917.45, and the pan-European EU50 index has fallen -0.31% to 5380.6.

Germany's DE40 shows a smaller loss of -0.27% to 23676.8, while the UK's UK100 is down -0.24% to 8602.0. France's FRA40 has decreased by -0.16% to 7859.7, and Poland's W20 is trading -0.21% lower at 2838.6.

The market movements come after yesterday's gains following the U.S.-China trade talks, suggesting some profit-taking or renewed caution among investors.

Dax Returns by Sector. Source: Bloomberg Financial LP

Volatility is currently observed in the broader European market. Source: xStation

The German DE40 Index is retracing modestly after setting a new all-time high yesterday, yet it remains above the 23.6% Fibonacci retracement level and the 50-day SMA—both acting as key support zones. Bulls will look to maintain momentum above recent highs to confirm the breakout, while bears may attempt to drive the index below those levels, with the 50-day SMA as a near-term target. The RSI is easing just below overbought territory, indicating a potential cooldown in bullish momentum. Meanwhile, the MACD is beginning to narrow, signaling caution as buying pressure may be losing steam. Source: xStation

Market News

• Bayer AG shares jumped 11% after the company's first-quarter earnings beat expectations, with adjusted EBITDA of €4.09 billion ($4.54 billion) surpassing analyst estimates of €3.88 billion. The pharmaceutical division drove the strong performance, with sales of €4.55 billion boosted by demand for new cancer drug Nubeqa (€515 million vs. €427.3 million estimated) and kidney medicine Kerendia (€161 million vs. €131.7 million estimated). These gains helped offset declining sales of blood thinner Xarelto, which is losing patent protection. CEO Bill Anderson maintained the company's 2025 outlook despite uncertainty around tariffs and currencies, noting, "In a more certain environment, we likely would have adjusted our guidance for pharmaceuticals upward." Morgan Stanley analysts called the results a "high quality beat" for the pharma business. Despite the positive earnings, Bayer's crop-science division reported disappointing sales due to weak pesticide demand and low glyphosate prices. The company has cut about 11,000 jobs since Anderson began his operational overhaul last year.

• Munich Re reported a decline in first-quarter net profit to €1.09 billion from €2.12 billion in the same period last year, while EPS fell to €8.34 from €15.77. Despite the profit drop, the German reinsurer saw insurance revenue rise to €15.81 billion, up from €15.06 billion a year earlier. The company confirmed its full-year 2025 guidance, maintaining expectations for a net result of €6 billion and insurance revenue of €64 billion.

• Hannover Re shares fell 3.2%, making it the second-worst performer on the Stoxx 600 Insurance Index, after the German reinsurer posted what JPMorgan described as "not a particularly pretty set of numbers." First-quarter net income declined 14% year-over-year to €480 million, though this still beat analyst expectations. The property and casualty combined ratio deteriorated to 93.9% from 88% a year earlier, worse than the 92.5% estimate, driven by large losses of €765 million that exceeded the quarterly budget. The California wildfires were the largest individual loss at €631 million. Despite the quarterly setback, Hannover Re maintained its full-year 2025 guidance of approximately €2.4 billion in net income. The company noted that April renewal negotiations in the Asia-Pacific region, North America, and some specialty lines resulted in "stable or slightly softer conditions at a price level that remained attractive."

Other news coming from individual DAX index companies. Source: Bloomberg Financial LP