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German factory orders surge in June
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DE30 fails at 12,750 pts resistance for the third time
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Earnings reports from Merck, Lufthansa and Siemens
Stocks in Europe are trading lower today. However, German DAX trades little changed on the day, thanks to solid factory orders data for June. US jobless claims data is the only noteworthy release left in today's calendar (1:30 pm BST). So far, markets ignored deadlock in US stimulus talks but as the weekend draws near, lack of progress may start to weigh on sentiment.
German factory orders data for June has been released today at 7:00 am BST. Reading showed an increase of 27.9% MoM while economists expected an increase of 10.1% MoM. This came after a 10.4% MoM increase in May. Domestic orders grew faster than foreign orders. A point to note is that automotive orders jumped 66.5% MoM. However, it should be noted that base was low and automotive orders still remain 12% below February's level.
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DE30 made another failed test of the resistance zone at 12,750 pts. Should the pullback continue, a lower limit of recent trading range at 12,560 pts will be the level to watch. Source: xStation5
Merck (MRK.DE) reported Q2 net revenue of €4.1 billion, marking a 3.7% YoY increase. Adjusted EBITDA dropped 23.5% YoY, to €1.07 billion while after-tax profit was 38.6% YoY lower at €289 million. Full-year guidance points to net revenue falling in between €16.9 and €17.7 billion and adjusted EBITDA is expected in the €4.45-4.85 billion range.
Deutsche Lufthansa (LHA.DE) reported Q2 net loss of €1.5 billion at the group level. Adjusted EBIT loss stood at €1.7 billion in spite of the company reducing operating expenses by 59% YoY. However, Lufthansa's cargo unit outperformed reporting a €299 million against a €9 million loss a year ago. Revenue dropped 80% YoY, from €9.6 billion to €1.9 billion.
Siemens (SIE.DE) reported revenue of €13.941 billion for the fiscal Q3 2020 (calendar Q2). This marked a 5% drop from the previous year. However, adjusted EBITA increased by 8% YoY to €1.792 billion. Net income at €535 million was 53% YoY lower and EPS came in at €0.67 (€1.28 last year). Company reported a massive increase in free cash flow, from €434 million to €2.46 billion. Company upheld full-year guidance of moderate drop in revenue.
DAX members at 10:41 am BST. Source: Bloomberg
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