- DE30 extends yesterday's gains
- Investor attention turns to Siemens Energy results
- JD.com explores possibility of acquiring stake in Germany's Ceconomy
Overall market situation:
Wednesday's session on European markets brings a continuation of improved sentiment among investors. Yesterday's euphoric gains on Wall Street supported the bulls in the Asian session, which saw strong gains in benchmarks from Japan, South Korea and, above all, China, where important macro data was published today. The sentiment continues in the European session as well. The most important macro readings of the day will be PPI data and the US retail sales report (1:30 pm GMT)
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At the moment, companies listed in Europe during Wednesday's trading session are trading in slightly better sentiment. Source: xStation 5
Futures based on the German DE30 are trading nearly 0.5% higher intraday. The benchmark has broken above the barrier set by the 15,700-point level and is now trading at its highest levels since September 2023. Source: xStation 5
News:
Chinese company JD.com is exploring the possibility of acquiring a stake in Germany's Ceconomy (CEC.DE) and is in talks with shareholders, Manager Magazin reported, citing anonymous sources. The company's shares are currently gaining nearly 16%.
A chart of the company's stock price. Source: xStation
Siemens Energy (ENR.DE) shares attracted wider attention in the German market today, gaining nearly 5.5% on the release of quarterly results.
Larger fourth-quarter free cash flow pleased investors, while lower net debt figures reduce the company's risk of a capital increase in the future. Deutsche Bank analysts added that Siemens' agreement to buy an 18% stake in Siemens India for €2.1 billion is "reassuring" and will dent the company's balance sheet.
Under the terms of the deal, Siemens Energy has secured a €15 billion restructuring agreement with the German government, banks and Siemens AG. The private banks will provide Siemens Energy with €12 billion in loan guarantees, backed by €7.5 billion in so-called government counter-guarantees. Siemens AG will also cover the first loss tranche of €1 billion in loan guarantees from the banks.
Continuing problems at Gamesa's wind power subsidiary will result in another operating loss this year, despite gains in other business lines, and the unit will not reach break-even until 2026, the media release added.
Selected company results and key comments. Source: Bloomberg Finance L.P.
The company's stock chart. Source: xStation
Analyst recommendations:
* BBVA (BBVA.ES): Morgan Stanley raised its target price for the bank's shares to €9.7 from the previous €9.2 per share.
* Brenntag (BNR.DE): Citigroup cuts its target price for the company's shares to €85 from its last recommendation of €96.
* Pandora (PNDORA.DK): Citigroup raised its target price for the bank's shares to DKK 1,050 from the previous DKK 810 per share.
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