- European stocks erase the early day losses
- Uncertainty has intensified due to Israel's military response
- Uncertainty has intensified due to Israel's military response to recent missile attacks by Iran
- Demand for electric vehicles in Europe is facing a slowdown
Overall market situation:
European stocks are negating the early losses and the session is marked by declines. The DAX index is currently down 0.77%, continuing the downward trend for the week. Concerns about the geopolitical situation before the weekend have prompted some investors to seek refuge in safe havens. Earlier, we saw increases in the prices of gold, oil, the dollar, and the franc. However, the situation now seems to be changing, with the earlier observed declines being almost completely erased.
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European companies listed during Friday's trading session are currently experiencing declines.
The German benchmark DE40 is recording a 0.15% decline during today's session, although movements reached as much as 1.5% earlier. The index is currently defending a key support zone of the upward trend located near the 50-day exponential moving average (blue curve on the chart).
News:
Car sales in Europe declined by 2.8% YoY in March. This had a particularly strong impact on brands like VW Group and Stellantis, which faced a significant drop in demand for electric vehicles. Sales of electric vehicles decreased by 11% (due to a decline in interest in Germany and Scandinavian countries).
In terms of individual countries, the declines were as follows (for all types of combustion engine, electric, and hybrid vehicles): Germany (-6.2%), Spain (-4.7%), Italy (-3.7%), and France (-1.5%).
Declines were also observed in the car registration sector, reaching 2.8% YoY.
The concentration of sales on electric vehicles is therefore questionable. In February, Mercedes-Benz Group AG lowered its sales forecasts and now expects electric vehicles to account for less than half of its sales for a longer period than anticipated.
Overall, car sales in March did not perform well. Some brands, such as Mercedes-Benz and Renault, managed to stay above the line.
Befesa shares (BFSA.DE) are down nearly 5.5% during today's session after Morgan Stanley downgraded its recommendation to "underweight." The bank points to risks that are not priced in by the market and limited scope for operational improvement. Furthermore, comparative analysis indicates that the company's shares are trading between 20-40% higher compared to its competitors, according to MS.
Other information for individual companies included in the DAX index. Source: Bloomberg Finance L.P.
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