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Markets wipe out yesterday's gains
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Attention focused on US debt limit negotiations
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Fresenius gains on wave of good results and strong forecasts
Tuesday's trading session on the European markets brings worse investor sentiment. The German DAX (DE30) is down today and is back below the psychological barrier of 16,000 points. The macro calendar for today's session is relatively poor and investors' attention will turn to information coming from individual companies. However, the situation will become more interesting tomorrow, when investors will learn about inflation data from the US.
Today, markets will be closely watching US President Joe Biden's debate with Congressional chairmen on revising the debt ceiling. Today's meeting in Congress could set the stage for negotiations, or at least a series of talks. According to experts, this sequence of events has also occurred when raising the debt limit in the past.
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The mood in Europe during Tuesday's trading session is relatively negative. Source: xStation 5
News:
The shares of Fresenius (FRE.DE) are gaining more than 7.5% during today's session following the publication of better-than-expected quarterly results. Moreover, the outlook for the future is expected to be even better, as also attested by the company's CEO, Mr Michael Sen, who intends to improve the operational performance of the healthcare conglomerate. The company's revenue in the first quarter amounted to €10.2 billion which slightly exceeded the analyst consensus. Operating profit came in at €354 million against expectations of €335 million. Investors are mainly reacting to the good results of the Kabi unit (intravenous drugs). The company confirmed its earnings forecasts for 2023.
The K+S (SDF.DE) fertilizer company's stock price is down more than 6% following a reduction in earnings forecasts for next year. EBITDA is expected to be between €1.15bn and €1.35bn this year against the company's previous forecast of €1.3bn-€1.5bn. The analyst consensus was for the result to reach €1.41 billion. However, first-quarter EBITDA managed to beat market expectations and came in at €454 million, 13% lower y-o-y and 5.55% higher than market expectations.
The shares of Evonik (EVK.DE), which reported mixed quarterly results, are also trading under pressure. Analysts are primarily focusing on full-year earnings forecasts, as it is lowering its full-year earnings forecasts to around the lower end of its previous guidance range due to the increasingly severe perimeter environment.
Changes in institutional holdings in individual companies of the DAX index (data from the last session). Source: Bloomberg
Major percentage changes and information from individual DAX index companies. Source: Bloomberg
DE30 chart
Futures based on the German DAX Index (DE30) are trading lower today and have broken below the psychological barrier of 16,000 points. Source: xStation 5
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