DE40: Markets Rebound After Yesterday’s Drop, Volkswagen Gains on Earnings

11:39 am 11 March 2025

  • European stock markets are skewed to the upside today with most of the major indices in the green, led by W20 (+1.35%) and FRA40 (+0.80%), while AUT20 (-0.21%) and UK100 (-0.09%) decline

  • Volkswagen shares gain despite forecasting flat profitability for 2025

  • Henkel Shares Drop After Disappointing Results and Q1 Warning

 

European markets are skewed to the upside today, with two indices in negative territory. AUT20 and UK100 show small declines of -0.21% and -0.09% respectively. Most other indices are posting gains, with W20 leading at +1.35%. Other positive performers include FRA40 (+0.80%), DE40 (+0.72%), SPA35 (+0.64%), and EU50 (+0.59%). Italian markets are also in positive territory with ITA40 up 0.43%. Swiss and Dutch markets are showing modest gains with SUI20 (+0.19%) and NED25 (+0.38%). The German DAX (DE40) is trading at 22,788.2 points, while the French CAC 40 (FRA40) stands at 8,108.4.

 

Dax Returns by Sector. Source: Bloomberg Financial LP

 

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

 

The German DE40 Index is attempting to regain bullish momentum after retesting the 78.6% Fibonacci retracement level. Bulls will aim to recapture the ATH at 22,996, while bears will look for a move below the 78.6% Fibonacci retracement level and a test of the 30-day SMA at 22,405. The RSI is in bearish divergence, which could be broken if the current high surpasses the previous high. The MACD is starting to tighten after a bearish crossover. Source: xStation

 

News

  • Volkswagen (VOW3.DE) Forecasts Flat Profitability for 2025 Amid Global Challenges - Volkswagen AG expects an operating margin of 5.5% to 6.5% in 2025, compared with 5.9% last year, with revenue increasing by up to 5%. The German automaker faces exposure to planned US tariffs and declining market share in China. CFO Arno Antlitz cited "global economic challenges and profound changes" affecting the industry. Despite EU relaxation of pollution targets, European sales remain weak due to higher living costs. For 2024, VW reported operating profit of €19.06 billion (-15% year-over-year) and revenue of €324.66 billion (+0.7%). JPMorgan analysts described the results as "strong overall" and the 2025 outlook as conservative.

  • Mitsubishi HC Capital Subsidiary Orders 50 Airbus (AIR.DE) A320neo Aircraft - JSA International U.S. Holdings, LLC, a subsidiary of Mitsubishi HC Capital Inc., has placed an order for 50 A320neo Family aircraft from Airbus. The strategic move aims to enhance JSA's aircraft leasing portfolio with more fuel-efficient models, expand business with global customers, support sustainable growth, and contribute to lower CO2 emissions in the aviation industry.

  • Steyr Motors Signs Framework Agreement with Rheinmetall Landsysteme (RHM.DE) - Steyr Motors AG has entered a substantial framework agreement with Rheinmetall Landsysteme GmbH, a subsidiary of Rheinmetall AG. The partnership combines Rheinmetall's expertise in tactical vehicles with Steyr Motors' experience in high-performance diesel engines and power generators. "The cooperation underlines the innovative strength of both companies and sets new standards in the development of modern military platforms," said Julian Cassutti, CEO of Steyr Motors AG.

  • Henkel (HEN3.DE) Shares Drop After Disappointing Results and Q1 Warning - Henkel shares fell as much as 7.6%, the most in almost three years, following fourth-quarter results that missed expectations and a warning about negative consumer volumes in Q1 2025. The company announced a €1 billion share buyback program to run from April 2025 to March 2026, but analysts noted that annual results will now depend on momentum in the latter half of the year. For 2025, Henkel forecasts an adjusted EBIT margin of 14% to 15.5% and organic sales growth of 1.5% to 3.5%.

 

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

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