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Europe focused on US PCE inflation report reading
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DAX continues slight unwinding of declines
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H&M and LVMH results
Friday's trading session on markets from the Old Continent brings moderate gains in the main stock indexes. Germany's DAX is recording gains today, nevertheless it continues to remain below the consolidation zone in the area of recent local peaks. The calendar of macro readings for today's session is focused before all on readings of macro data from the US. At 1:30 p.m. GMT, we will learn PCE inflation data from the US, and at 3:00 p.m. GMT, final UoM sentiment and pending home sales data. Before the Wall Street session, American Express (AXP.US) and Chevron (CVX.US) will present their quarterly results.
Investor sentiment on the Old Continent improved slightly on Friday. Most of the companies are now trading on the upside. Source: xStation 5
Company news and bank recommendations:
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The Air-France-KLM (AF.FR) conglomerate has placed an order for seven aircraft from Airbus (AIR.DE). The four Airbus A350F aircraft are scheduled for delivery by 2026 and will ensure that KLM and Air France airlines strengthen their position as the quietest and most advanced cargo divisions on the market. Three A350-900 passenger aircraft will get delivered to Air France in 2024.
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There is also a lot going on in apparel and fashion companies, which are reacting to the performance of LVMH (MC.FR) and H&M (HMB.SE).
H&M shares lost nearly 6% at the start of the session following the release of worse-than-expected Q4 results. Investors were most discouraged by weak operating profit and rising costs. The company is also burdened by a costly exit from the Russian market.
LVMH's results may have come as a bit of a disappointment to many. Although sales themselves rose 9% due to the holiday season, the sheer level of margins does not inspire much optimism. The company's marketing expenditures in the second half of the year increased by nearly 30% despite a decline in the rate of revenue growth. The impact of lockdowns in China continues to weigh on the company.
LVMH's 2022 results by geographic region. Source: LVMH
DE30 chart:
DE30 futures are trading moderately higher today. The instrument continues to stay below consolidation near local peaks and close to resistance set by the 78.6% Fibo retracement. Source: xStation 5
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