- DAX returns to area of historical highs
- Adidias, Lufthansa and HSBC shares react to earnings releases
Overall market situation:
Tuesday's session on European stock markets brings gains for most stock indexes. Germany's DAX is currently gaining 0.25%. Britain's FTSE 100 adds 0.10% at the same time. France's CAC40, meanwhile, is gaining 0.28%. Investor attention today turns to corporate news (Adidas, Lufthansa, HSBC).
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Volatility seen today in the broad European market. Source: xStation
The German benchmark DE40 is trading nearly 0.40% higher during Tuesday's session. The key support/resistance points of the broad uptrend appear to remain the 19,000-point zone, the 50-day EMA (blue curve on the chart) and the historical peak tested last week, which now serves as the main control zone for the supply and demand sides. Source: xStation
Adidas (ADS.DE) released its third-quarter figures, which showed that operating margin exceeded average analyst estimates. Shares rose more than 1.2% on Tuesday, posting solid sales growth and strong underlying performance in most regions.
THIRD QUARTER RESULTS
- Operating margin 9.3%, estimated 8.69%
- Gross profit €3.30 billion, estimated €3.28 billion
- Revenues in Europe €2.15 billion, estimated €2.11 billion
- Revenues in North America €1.36 billion, estimated €1.52 billion
- Sales in China 946 million euros, estimated 968.8 million euros
- Latin America revenue 677 million euros, estimated 647.8 million euros
- Net income from continuing operations 469 million euros, estimate 343.1 million euros
- Net profit 443 million euros, estimated 356.1 million euros
- Profit before tax 601 million euros, estimated 504.8 million euros
- Royalty and commission income €20 million, estimated €20.9 million
- Cost of sales €3.14 billion, estimated €3.97 billion
- Marketing costs €724 million, estimated €738 million
- General operating expenses €2.11 billion, estimated €2.03 billion
- Inventories €4.52 billion, estimated €4.65 billion
- Net cash balance at the end of the period €1.78 billion
Deutsche Lufthansa AG (LHA.DE) reaffirmed its outlook for the full year, as strong demand for premium travel helped the airline post record revenues in the third quarter. Europe's largest airline group said that with passenger demand above levels seen last year, it plans to increase capacity in the fourth quarter and expects to post a positive operating result for the final three months of 2024. However, the company's shares are losing nearly 3% in today's session. This is largely due to a 9% drop in operating income in the third quarter, which is attributable to steadily rising costs.
In the UK, investors' attention is caught today by the shares of HSBC (HSBA.UK), which are gaining 4%, after the bank reported better-than-expected earnings and decided to buy back $3 billion worth of its own shares.
Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP
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