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The Old Continent in the red at the start of today's session
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Attention turned towards the results of European banks
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Jungheinrich (JUN3.DE) on the back of very good quarterly results
Today's session on European stock exchanges brings a marked deterioration in investor sentiment, reacting to the weak trading session in Asia and yesterday's lower close on Wall Street. The German DAX is currently trading at new weekly lows. Investor attention today is focused on the quarterly results of European banks, with reports from UBS (UBSG.CH) and Santander (SAN1.ES).
The mood in Europe during Tuesday's trading session is clearly weak. Source: xStation 5
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The attention of investors on the Old Continent today is primarily focused on the quarterly reports of major European banks such as Santander (SAN1.ES) and UBS (UBSG.CH). The results of Spain's Santander managed to beat analysts' expectations, but the bank's shares are nonetheless losing due to sharp customer withdrawals and somewhat disappointing net interest income (in terms of the quarterly figure).
The banking sector's attention, however, is focused on the UBS report. The bank's shares are losing more than 5.5% after the announcement of results that disappointed analysts. Investment banks are primarily looking at the possibility of a downgrade in consensus due to weak net interest income forecasts (according to JP Morgan, the EPS forecast may be lowered by 3-5%). The lack of details on the merger process with Credit Suisse also draws attention.
The bank is suspending its share buy-back programme and assuming provisions of USD 665 million for litigation related to the sale of MBSs just before the 2008 financial crisis. The sentiment around the company is somewhat improved by an inflow of nearly US$28 billion in assets that were deposited shortly after the Credit Suisse takeover was announced. UBS shares are also reacting to comments in which management gave notice that geopolitical tensions and recent liquidity concerns in the banking sector are affecting client activity and could directly translate into lower asset inflows going forward.
Detailed financial data provided by UBS. Source: Bloomberg
Goldman Sachs upgraded its rating on TeamViewer (TMV.DE) to 'buy' and raised its target price for the company's shares by 35% to €21 per share. The shares are currently gaining nearly 5.5%.
Jungheinrich (JUN3.DE) shares are gaining more than 11% following the publication of significantly better-than-consensus quarterly results and raised annual forecasts.
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 companies in the DAX index. Source: Bloomberg
DE30 chart
Futures based on the German DAX index (DE30) are trading down today and are going down to new weekly lows. Source: xStation 5
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