- DAX under further downward pressure
- Nike results raise volatility on European-listed peers
- HSBC raised its recommendation on Redcare Pharmacy NV
Overall market situation:
Wednesday's session on European stock markets brings moderate declines in most stock indices. Germany's DAX is currently losing 0.30%. Britain's FTSE 100 is gaining 0.15%. At the same time, France's CAC40 is losing 0.05%. Investors' attention turns to corporate news today, especially in the context of Nike's results. Moreover, investors will learn the latest ADP data from the US.
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Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is trading nearly 0.50% lower during Wednesday's session. It seems that the key support points of the broad uptrend remain the zones of recent peaks (19,000 points) and the 50-day EMA (blue curve on the chart). Source: xStation
News:
European sportswear brands traded in mixed sentiment on Wednesday, after U.S. Nike (NKE.US) reported a drop in quarterly sales and withdrew its full-year sales guidance, following a change in management this month. Adidas (ADS.DE) shares are currently gaining 1.7%, Puma (PUM.DE) is losing 0.2%, and JD Sports (JD.UK) is off 5.5%.
Barclays says JD Sports has about 50% of Nike's revenue exposure at the group level, while Hargreaves Lansdown says JD Sports is Nike's largest partner globally.
Below are JD Sports' published results:
H1 RESULTS
- Profit before tax GBP 405.6 million, estimated GBP 398.4 million
Revenue £5.03 billion, estimated £5.07 billion
Gross profit margin 48.2%, estimated 48.1%
Operating profit GBP 451.1 million, estimated GBP 424 million
2025 FORECAST
- Profit before tax GBP 955 million to GBP 1.04 billion, estimated GBP 981.4 million
An HSBC analyst raised his recommendation for Redcare Pharmacy NV (RDC.DE) to “buy” from an earlier “hold.” Target price set at 155 euros, a 15% increase from the last closing price.
Abu Dhabi National Oil Co. struck a deal to buy chemical producer Covestro AG (1COV.DE) for about €11.7 billion, in what is expected to be the largest acquisition of a European company in the Middle East. The acquisition will value the German company at 62 euros per share.
GEA Group (G1A.DE) shares are gaining more than 3% after the supplier of equipment for the agricultural and food industries reported that it reached its medium-term financial targets early.
Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP
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