- DE30 in a marasm during Wednesday's session
- Weaker FedEx results lift Deutsch Post shares lower
General market situation:
Wednesday's session on European markets brings mixed sentiment among investors. Germany's DAX index is currently losing nearly 0.1%. The macro calendar for today's session is relatively empty, and trading volumes themselves may also be limited due to the upcoming holidays.
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European companies listed during Wednesday's trading session currently cannot find a common direction. Companies in the fuel and telecommunications sectors are doing relatively well at the moment. More downward momentum is currently being seen on companies in the banking sector. Source: xStation 5
The German benchmark DE30 is losing nearly 0.2% during today's session and is holding near the zone of local peaks. Source: xStation 5
News:
European auto stocks are losing ground today on the release of a European report on sales and car registrations in Europe. According to the report, sales growth is slowing down on a monthly basis, although on a y/y basis these figures show a nearly 6% increase. Importantly, however, EV sales are declining, which has to do with an insufficient number of attractive models and growing competition from China.
Source: Bloomberg Financial LP
The shares of Dutche Post (DHL.DE) are trading under downward pressure today, losing 1.4%. The reason for the sell-off may be primarily due to a weaker quarterly report from its U.S. competitor, FeEx (FDX.US). The company lowered its sales forecast for the fiscal year ending May 31. Cost cuts were not enough to offset volume declines in the airfreight unit amid the continuing recession in the freight sector.
Fedex (FDX.US) results. Source: Bloomberg Financial LP
ProSieben (PSM.DE) shares fall 6% after the company signaled that its expenses will increase as a result of investments in local programs and content licensing costs in the US. Analysts say the increased costs are likely to affect consensus Ebitda estimates.
Analyst recommendations:
* Volkswagen (VOW3.DE): Stifel reaffirms its rating for the company's shares at "buy" with a target price of €149 per share. The company believes that with the ongoing cost-cutting program and improved efficiency in vehicle development (along with the launch of new brand models) will create a favorable business case in 2024.
* Continental (CON.DE): UBS reiterates its "neutral" rating on the stock. The target price remains at €71 per share.
* BMW (BMW.DE): Bernstein reiterates its "buy" rating on the company's shares and maintains its target price at €110.
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