- DE40 pare losses after lower US PCE reading
- Nike guidance weighs on Puma and Adidas shares
- Morgan Stanley increases stake in MorphoSys
General market situation:
The last session in European markets this week brings mixed sentiment among investors. In the first phase of the session, some benchmarks recorded declines, but these have now been negated in part following the publication of a larger-than-expected drop in PCE inflation. Sportswear companies in particular are trading under downward pressure today. This has to do with the gloomy forecasts of Nike, which reported its quarterly results.
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European companies listed during Friday's trading session are mostly gaining at the moment. The sectors that are doing best at the moment are fuels and banks. In contrast, large declines are recorded in the service goods and clothing sectors, as well as in the marketing services industry. Source: xStation
The German benchmark DE40 is losing nearly 0.12% during today's session. The scale of the sell-off was somewhat reduced after the publication of PCE data from the US. It is worth noting that the volume still indicates a pre-holiday lull in market volatility. Source: xStation 5
News:
Negative sales forecasts for the coming quarters knocked the shares of Adidas (ADS.DE) and Puma (PUM.DE) sharply lower today. Nike on Thursday downgraded its sales outlook and announced a massive cost-cutting program.
Nike expects a slight decline in sales in the current quarter. Revenues are expected to rise again in the fourth quarter, but only by a low single-digit percentage. Despite the increase, sales in the important Greater China region fell short of market expectations.
Source: xStation
MorphoSys (MOR.DE) shares are gaining nearly 4% in today's session, following an increase in voting rights (14.59%) in the company's shareholding by Morgan Stanley.
Rheinmetall (RHM.DE) has won a €328 million contract to modernize Romania's air defense system.
Klöckner & Co (KCO.DE) plans to sell part of its European trading operations. The company announced the sale of four domestic companies, which have recently experienced operating losses. The transaction could have a significant positive impact on adjusted operating results for fiscal 2024. The company's shares are currently gaining nearly 1%.
Analyst recommendations:
* BASF (BAS.DE): Analyst firm Warburg Research reiterated its "neutral" recommendation on Aurubis shares. The target price remains at €45.50.
* Adidas (ADS.DE): Jefferies reiterates a "neutral" rating on the company's shares.
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