- European indices stop the upward wave
- LVMH's results put pressure on companies from the luxury goods sector
- flatexDEGIRO with better than expected quarterly results
General market situation:
Wednesday's session on European stock markets is marked by declines. The German DAX erases some of the gains from the beginning of the week and is currently losing 0.7%. At the same time, the French CAC40 loses 1.03%. Investor attention today turns to the BoC's decisions, as well as the reaction to the results of Alphabet and Tesla. In Europe, high volatility is observed mainly in shares from the luxury goods sector, which is due to the worse-than-expected results of LVMH.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is trading nearly 0.64% lower during Wednesday's session. The index remains above the key barrier zone marked by the 50-day exponential moving average (blue curve on the chart). An upward break could theoretically open the way to testing the zone of local peaks near 18,930 points in the medium term. The area marked by the 100-day EMA (purple curve on the chart) remains the most important support level. Source: xStation
The news:
Deutsche Bank AG (DBK.DE) is no longer planning a second share buyback this year after a provision linked to its Postbank unit caused its first quarterly loss in four years, Chief Financial Officer James von Moltke said in an interview on Bloomberg TV.
Shares of Banco Santander (SAN1.ES) are up 2.3% today, the best performer on the Stoxx 600 Banks Index, after the Spanish bank posted a second-quarter net profit that beat market expectations and improved prospects for productivity and revenue growth for the entire year.
SECOND QUARTER RESULTS
- Net profit 3.21 billion euros, estimated 3.13 billion euros
- Net profit of Digital Consumer Bank EUR 1.07 billion
- Net profit of retail and commercial banking EUR 3.33 billion
- Net profit from property management and insurance 818 million euros
- Net profit from corporate and investment banking €1.41 billion
- Net provision for credit losses €3.12 billion, estimated €3.26 billion
- Net interest income EUR 11.47 billion, estimated EUR 11.9 billion
- CET1 index at full load 12.5%, estimated 12.3%
- Non-performing loan ratio 3.02%, estimated 3.21%
- Customer deposits amount to 1.04 trillion euros, estimated 1.01 trillion euros
- Operating costs €6.37 billion, estimated €6.63 billion
ANNUAL FORECAST
- Return on physical capital above +16%, previously estimated +16%, analysts expected +14.8%
- Efficiency rate 42%, previously estimated at 43%, analysts expected 43.5%
Broker flatexDEGIRO (FTK.DE) published second-quarter results above analyst expectations. The company maintained its forecasts for the entire year. Citi and Jefferies banks believe that this decision may be considered conservative and lead to an increase in these forecasts in the second half of the year.
SECOND QUARTER RESULTS
- Revenues EUR 118.7 million, +31% y/y, estimated EUR 113.4 million
- Ebitda EUR 52.9 million, estimated EUR 52 million
FORECASTS
- The company expects revenues to increase by up to 15% in 2024
- The company expects net profit to increase by up to 50% in 2024
Other news coming from individual DAX index companies. Source: Bloomberg Financial LP
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
