- European markets lose during Tuesday's session
- ZEW data points to rise in German unemployment, wages remain high, however
- Bayer, Brenntag and Infineon stocks in focus
- Later in the day, attention will turn to numerous speeches by bankers
Sentiment in the German stock market is subject to further downward pressure. Apart from the semiconductor sector, almost all sectors of the economy are losing ground on the market. In Germany itself, investors' attention was drawn today to CPI data for October and ZEW data for November. In the broad market, investors' attention today turns to the numerous speeches by Fed bankers.
Sentiment in the European stock market is mostly weak today. Relatively good sentiment is seen only in the semiconductor sector. Source: xStation5
Among the index companies, Bayer and Brenntag are losing the most. On the other hand, relatively large increases are seen in Infineon shares. Source: Bloomberg Finance L.P.
DE40 (D1 interval)
DAX (DE40) quotations appear to be following a technical correction scenario bounded by the 50-day exponential moving average (blue curve), and if the conditions for its fulfillment are met, a rebound to the zone of historical peaks is not excluded. On the other hand, however, a breakout below this zone may initiate a further downward correction, which may be limited by the 100-day EMA (purple curve).
Source: xStation5
News from companies
Bayer (BAYN.DE) shares are down 10% to their lowest level in 20 years after the company released weaker-than-expected third-quarter results, lowered forecasts for this year and forecast a “subdued” outlook for next year. The new data suggests that next year “may look slightly worse across all business segments than analysts had previously modeled.
ANNUAL FORECAST
- Adjusted Ebitda profit €10.4 billion to €10.7 billion, company previously expected €10.7 billion to €11.3 billion, analysts expected €10.35 billion
Q3 RESULTS
- Adjusted EBITDA EUR 1.25 billion, estimated EUR 1.33 billion
- Adjusted EBITDA margin 12.6%, estimated 13.5%
Brenntag (BNR.DE) shares are down 9.5% after the chemical company reported that Ebit operating profit for the third quarter missed average estimates. Analysts said the results show the impact of high cost growth, and Warburg forecast downward consensus revisions.
Q3 RESULTS
- Ebit €281.1 million, estimate €295.8 million
- EBIT EU1.02 billion, +1.9% y/y
- Profit after tax EU120.0 million, estimate EU149.2 million
- EPS €0.82 vs. €1.18 y/y, estimate €1.08
- Sales €4.07 billion, -0.5% y/y, estimate €4.11 billion
ANNUAL FORECAST
- Ebit of €1.1 billion to €1.2 billion, estimate €1.17 billion
Infineon (IFX.DE) shares rise 5.3% as the chipmaker forecasts a modest rebound starting in the second quarter of fiscal 2025, following a sharp drop in sales in the current quarter due to a prolonged inventory correction. Forecasts of strong revenue growth in artificial intelligence-related applications also likely boosted sentiment.
Daily Summary – Wall Street Rally Driven by Powell’s Promises
TSMC Earnings Preview: Will the Key Semiconductor Supplier Surprise the Market?
Gold hits a record, as stocks rally on earnings strength
US Open: American Indices Rally on Anticipated End of Fed Balance Sheet Reduction
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
