- Wall Street sell-offs affect markets from the Old Continent
- Mercedes-Benz results in focus of investors' attention
- ECB decision at 1:15 pm BST
General market situation:
Thursday's session on European markets brings a bitter investor sentiment. Yesterday's sell-offs on Wall Street are also extended today, with declines hitting the banking sector and automotive companies hard. At 1:15 pm BST, investors will learn the ECB's decision on interest rates. ADRs of U.S. companies listed on the Old Continent are also seeing sizable declines.
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At the moment, most companies listed in Europe during Thursday's trading session are trading down. Source: xStation 5
Futures based on the German DE30 are trading nearly 0.85% lower on an intraday basis and are once again down to the zones of lowest levels seen since March this year. In the medium term, it is this zone that represents the most important checkpoint for both buyers and sellers. Source: xStation 5
News
Mercedes Benz (MBG.DE) quarterly results.
- Passenger car sales fell 4% year-on-year to 510,564 units.
- Sales of electric cars totaled 102,292 units, up 21% year-on-year.
- Revenues were €37.2 billion, down 1% year-on-year.
- Earnings before interest and taxes (EBIT) amounted to €4.942 billion (down 7% year-on-year).
- Net income was €3.719 billion, down 7% year-on-year.
- Free cash flow (FCF) was €2.3 billion, down 22% year-on-year.
- Vans segment reports better results
The company's performance is now sustained by electric vehicles, with the Top-End segment posting a y/y decline. Source: Mercedes-Benz
All in all, the 2023 results are expected to look similar to those of 2022 in terms of the company's core accounting performance measures. Source: Mercedes-Benz
The company's shares are losing more than 5.8% during today's session.
Source: xStation 5
Very weak sentiment is also observed in the European banking sector. Banks such as Standard Chartered (STAN.UK) and BNP Paribas (BNP.FR) are losing 9.5% and 3.7%, respectively, following their publication of worse quarterly results. The British bank lost primarily after a $1 billion valuation loss on its exposure to the Chinese real estate market, which is struggling badly. As for BNP Paribas, results were almost in line with expectations, but investors were spooked by worse results in retail banking. Net profit came in at €2.66 billion (€2.64 billion was expected, down 4% y/y).
Most banks in the European market are down today. Source: xStation 5
Analyst recommendations:
* Delivery Hero SE (DHER.DE): JP Morgan cuts target price to EUR 51 from EUR 57
* Symrise (SY1.DE): Berenberg cuts target price for shares to EUR 112 from EUR 124
* Worldine (WLN.FR): HSBC cuts target price to €25 from €55
* Worldine (WLN.FR): JP Morgan cuts target price to €23.9 from €55
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