DAX: DE40 fluctuates near all-time high. Zalando extends declines by 2.5% after downgraded recommendation at Arete 📉

• DAX underperforms European indices; DE40 loses 0.2%. Zalando (ZAL.DE), Lufthansa Airlines (LHA.DE), freight company Hapag-Lloyd (HLAG.DE) lose the most heavily
• Siemens AG (SIE.DE) near ATH after contract with British railroads. Bayer (BAYN.DE) without much reaction to the initial success of the drug Elinzanetant 
• Zalando downgraded to Neutral at Arete; target price €35; Bernstein analysts raise recommendation to 'overweight' on Beiersdorf
• German industrial production up surprisingly, despite weaker orders reading, reported yesterday 

The mood on the German stock market remains subdued today, although the index is fluctuating near historic highs. Investors also learned surprisingly strong industrial production data. Industrial production for November rose 1.5% m/m, against expectations of 0.5% m/m and the previous reading of -1.0% m/m. Exports rose 2.1% m/m, against expectations of 2.0% m/m and the previous 2.8% m/m decline. Imports fell unexpectedly by 3.3% m/m, with an expected increase of 0.7% m/m and with a previous decline of 0.1% m/m It is worth mentioning that in September we had a massive increase in transportation orders, which is most likely at this point projecting a recovery in industrial production. Since September, however, orders have been clearly declining. 

DE40 (D1 interval)

The DAX contracts are struggling to break out above the 50-session average (orange line), which would potentially open the way for the bulls to make new highs.

Source: xStation5

Zalando (ZAL.DE)

Zalando is already down nearly 15% from local maxima; however, the stock could still realize a 1:1 correction scenario, with the price currently reaching the lower range in a potentially upward pattern.

Source: xStation5

Source: Bloomberg Finance L.P.

Companies news

Bayer's (BAYN.DE) drug Elinzanetant meets all primary and secondary targets in the Phase III OASIS 4 trial for the treatment of moderate to severe vasomotor symptoms caused by breast cancer treatment. The stock, however, is gaining slightly, currently rising less than 0.5%.

• The drug's 2024 52 safety profile appeared to be consistent with previously published data in postmenopausal women with VMS. 
• The positive results of the OASIS 4 study complement the positive results of the OASIS 1, 2 and 3 studies and further confirm the efficacy and safety of the drug Elinzanetant, the company reported.

Mercedes (MBG.DE) shares are losing 0.5%, although the company's Mercedes-India division posted its best-ever annual sales in 2024. The company now plans to debut 8 new models in India, including electrics, after 14 models debuted in 2024. In 2024, the company sold 19,565 models in India; that's up 12% from 17,408 units in 2023. 

• Mercedes reported that 25% of vehicles sold in India last year were high-end models. In the second half of 2024, however, market growth in India slowed to 2-3%, with Mercedes' sales increasing precisely due to strong demand for premium vehicles. Currently, the company is fulfilling orders for 2,000 models in the Indian market.
• Mercedes managers point to favorable business circumstances in the country, and a positive currency effect. On the other hand, the company is concerned about geopolitical risks and tariffs. Sales of Mercedes electrics in India grew 94% year-on-year in 2024; and the share of all EVs in Mercedes' total sales increased from 2.5% to 6%. Mercedes India aims to open 20 new showrooms in India, up from 125 today, in 2025. The automaker managed to sell 50,000 cars in India in its first 20 years; sales have been accelerating in recent years.

Siemens (SIE.AG) secures additional 4 HS2 Ltd infrastructure contracts, valued at €670 million; orders will be fulfilled by Siemens Mobility as part of the Rail Systems Alliance. The company's shares are gaining less than 0.2%.

• The work will include the new UK High Speed Rail (ETCS) from London to the West Midlands. The company has formed a venture with Costain Group PLC to provide high-voltage power systems. The two companies will also maintain and operate the system for at least seven years; Siemens will provide technical support for at least 15 years. Implementation will begin in 2025. The goal of the project will be to improve network performance and minimize delays.

Siemens AG shares (SIE.DE)

Source: xStation5