- European indices try to make up for week-end losses
- Better Hermes and EssilorLuxottica results bolster fashion market sentiment
- BASF loses 2.5% after publication of weaker quarterly data
Overall market situation:
Friday's session on European stock markets brings an attempt to improve sentiment at the end of a weak week. Germany's DAX is currently trading 0.3% higher on an intraday basis. At the same time, France's CAC40 is gaining 0.92%. Investors' attention turns today to PCE data from the US. In addition to macro data, incoming quarterly results from companies remain key all the time.
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Volatility currently observed in the broad Euro European market. Source: xStation
The German benchmark DE40 is trading nearly 0.52% higher during Friday's session. The index tested the key support level set by the 100-day EMA (purple curve on the chart). Interestingly, the breakthrough of this zone was confirmed by an increased volume reaction. As long as the index remains above this zone, the pressure to sustain the uptrend may dominate the market all the time. Source: xStation
News:
Mercedes-Benz Group (MBG.DE) lowered the upper range of its key margin forecast due to a subdued outlook and strong competition in China, coinciding with warnings from other automakers. The company's shares nevertheless gained 0.3%, as weak industry sentiment created concerns that the company would issue a profit warning.
SECOND QUARTER RESULTS
- Adjusted Ebit of Passenger Cars division €2.76 billion, -28% y/y, estimated €2.83 billion
- Adjusted Ebit of the Vans division €834 million, +5.3% y/y, estimated €742.9 million
- Adjusted Ebit of Mobility division €271 million, -40% y/y, estimated €295.9 million
- Adjusted return on sales of the Passenger Cars division 10.2% vs. 13.5% y/y, estimated 10.3%
- Adjusted return on sales of Van division 17.5% vs. 15.5% y/y, estimated 15.4%
- Sales 36.74 billion euros -3.9% y/y, estimated 37.22 billion euros
- Car sales €27.17 billion, -3.8% y/y, estimated €27.4 billion
- Van sales €4.77 billion, -6.8% y/y, estimate €4.84 billion
- Ebit 4.04 billion euros, -19% y/y, estimate 3.99 billion euros
- Net profit €3.06 billion, -16% y/y, estimates €2.93 billion
- R&D expenses €2.30 billion, -4.2% y/y, estimates €2.43 billion
ANNUAL FORECAST
- The company expects an adjusted return on car sales of 10% to 11%, previously estimated 10% to 12%, analysts expected 10.9%
- Adjusted return on sales of commercial vehicles is expected to be between 14% and 15%, previously estimated between 12% and 14%, analysts expected 14.2%
BASF (BAS.DE) falls 2.5% after the German chemical company's second-quarter results missed analysts' estimates.
SECOND QUARTER RESULTS
- Adjusted Ebitda €969 million, estimated €1.03 billion
- Adjusted Ebitda €1.96 billion, estimated €2.01 billion
- Sales 16.11 billion EU, estimated 16.72 billion EU
- Net income €430 million, estimated €481.5 million
- Adjusted earnings per share 0.93, estimated 0.82 euros
- Net debt at end of period €21.44 billion, estimated €20.62 billion
ANNUAL FORECAST
- Company expects adjusted Ebitda profit of 8 billion euros to 8.6 billion euros, estimated 8.23 billion euros
Better-than-expected results from Hermes (RMS.FR) and EssilorLuxottica (EL.FR) bolstered sentiment in the luxury goods market today. Hermes management said it did not see a major change in trends at the start of the third quarter for the ultra-premium segment. EssilorLuxottica's management confirmed that Meta Platforms is interested in buying a stake in the company.
Source: xStation
Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP
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