- European indices dip slightly ahead of key US CPI data
- European indices dip slightly ahead of key US CPI data
European stock indices are showing moderate volatility on Friday, 1.5 hours before the release of US CPI data, which is significant given the ongoing government shutdown in the US. The EU 50 contract is down 0.25%, while the German DE40 is down 0.04%. In addition to the US data, investors are eagerly awaiting quarterly results from companies. In Europe, these included Sanofi and Eni. Porsche (P911.DE) will present its results today after the session.
Source: xStation
Currently observed volatility on the broader European market. Source: xStation
The DAX is rising slightly during Friday's session and is attempting once again to break above the key support level set by the 50-day exponential moving average (blue curve on the chart). At the moment, however, the index is still maintaining a technical uptrend, looking at the price pattern above the 50- and 100-day EMA. Source: xStation
News:
French pharmaceutical company Sanofi (SAN.FR) surprised the market positively with its results for the third quarter of 2025, achieving earnings per share of €2.91 against expectations of €2.65, mainly thanks to record sales of its flagship drug Dupixent (€4.16 billion, above the forecast of €4.01 billion). The company's shares rose by as much as 5.2% on Friday, recovering some of the 8% loss recorded since the beginning of the year, with Dupixent – used to treat atopic dermatitis and asthma – generating sales growth of 26.2% (at constant exchange rates) and expected to peak at around €21 billion in annual sales before losing patent protection in 2031. The weak spot in the results was vaccine sales, which fell 17% in the influenza segment due to increased price competition in Europe and lower vaccination rates in the US, which CFO François-Xavier Roger attributed to “vaccine fatigue after the COVID-19 pandemic.” The company confirmed its annual sales growth forecast in the high single digits and earnings per share growth in the low double digits (at constant exchange rates), while continuing its €5 billion share buyback program, which is set to be completed in 2025.
Italian energy company Eni (ENI.IT) surprised investors with solid results for the third quarter of 2025 and decided to increase its share buyback program by 20% to €1.8 billion, driven by improved cash flow prospects, a diversified business portfolio, and the achievements of its cost reduction program. Net income of €1.25 billion significantly exceeded the consensus forecast of €1.01 billion, supported by the Exploration & Production sector, Global Gas & Power (GGP) and favorable exchange rates, with production at 1.76 million barrels of oil equivalent per day (up 5.7% year-on-year, above the forecast of 1.72 million) and operating cash flow reaching €3.08 billion. The company raised its forecast for the full year 2025, taking into account a free cash flow forecast of €12 billion (up from €11.5 billion) and production in the range of 1.71-1.72 million barrels per day, while confirming significant optimization initiatives worth €4 billion and increasing the dividend per share to €1.05 (up 5%). The company's shares are up 2.3% today.
What does the sell-side say?
The European chemical sector continues to perform poorly, falling 1.2% in 2025 compared to a 13% increase in the broad Stoxx 600 index, affected by weak demand, high inventories, and pressure from US tariffs and a weaker dollar. The key problems are oversupply (German plants are operating at only 72% of capacity, the weakest in three decades), the poor condition of major customers such as the automotive industry (down 10% this year) and construction, as well as disappointing results from companies such as Akzo Nobel and Evonik, which have lowered their forecasts. JPMorgan analysts predict that oversupply will continue at least until 2028, although some investors see opportunities in cheaper valuations (BASF BAS.DE, Covestro 1COV.DE, Wacker Chemie WCH.DE), assuming an end to the destocking phase and a possible rebound in volumes in the coming quarters. Hopes are pinned on Germany's €500 billion fiscal package and new subsidies for electric vehicles, which could stimulate demand, although a full recovery seems distant.
Source: Bloomberg Financial Lp
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