DE30: Daimler cuts dividend by over 70%

• European markets open higher on Tuesday

• DE30 retests all-time highs

• Daimler (DAI.DE) cuts dividend by over 70%

European shares launched today’s trading higher, thanks to solid gains achieved on the US and Asian equity markets. The German DAX opened near 13600 pts handle today (+0.81% higher) and retested an all-time high at the beginning of a cash session. Dutch and Russian shares are European top movers today while stocks from Poland and Spain lag the most.

Source: xStation5

DE30 is having another strong week. The German index recovers from yesterday’s declines and trades 0.5% higher against the close of the previous week. The index bounced off the lower limit of the Overbalance structure at the beginning of February and reached the upper limit today. Note that price zone marked by previous all-time highs often saw reversal in price behaviour and one cannot rule out that this time things will look similar. Should it be so, the index may once again revisit 12935 pts area. Break above the high at 13635 pts  would put the index in uncharted waters.

DAX members at 9:32 am GMT. Source: Bloomberg

Bloomberg reports that T-Mobile US is likely to win court approval for a $26.5 billion takeover of Sprint Corp. Official verdict may be announced today in the US morning hours. Both T-Mobile and Sprint rallied yesterday in the after-session trading. Deutsche Telekom (DTE.DE), owner of T-Mobile, is trading higher today as well.

Daimler (DAI.DE) reported results for full-2019. Revenue increased 3% YoY to €172.7 billion while EBIT dropped over 60% YOY to €4.3 billion. EBIT would stand at €10.3 billion (-7% YoY) if it was not for one-offs. Net income reached €2.7 billion (-64.4% YoY). However, dividend action is likely to steer today’s trading on Daimler shares as the German carmaker decided to slash payout from €3.25 to €0.90. The decision was reasoned with cost cuts needed for an expensive EV shift. 

Deutsche Bank (DBK.DE) said it plans to raise at least $1 billion in additional Tier 1 capital. The stock slipped on the news.

Daimler (DAI.DE) opened with a major bullish price gap today and tested the price zone at €45 shortly after the session opened. However, as the time passed, investors started to pay bigger attention to company’s earnings rather than broad market sentiment. Share price erased today’s gains and even dipped below yesterday’s low at one point. Should bears remain in control, the nearest levels to watch are €41.50 and €40.55. Source: xStation5