- European indices gain ahead of US CPI data
- RWE, Hapag-Lloyd and ThyssenKrupp results in the background
- Rheinmetall to acquire US-based Loc Performance for $950 million
General market situation:
Wednesday's session on European stock markets brings moderate gains in most stock indexes. Germany's DAX is currently gaining 0.4% on an intraday basis. At the same time, France's CAC40 is adding 0.32%. Investors' attention turns today to the release of CPI data from the US, which will be one of the key aspects defining sentiment for the rest of this week. The reading is due at 1:30 pm BST.
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Open account Try demo Download mobile app Download mobile appRheinmetall (RHM.DE) will acquire U.S. military vehicle supplier Loc Performance in a deal valued at $950 million, the German defense group announced. The company's shares are currently gaining 1.5%
Volatility currently observed in the broad European market. Source: xStation
Wednesday's session marked the German benchmark DE40 trading nearly 0.21% higher. The index broke above the key resistance level set by the 200-day EMA (gold curve on the chart). Just before the US CPI report, the index is testing the resistance level set by the abolition of the 23.6% Fibo of the upward wave initiated last October. If the market bulls fail to take dominance over the market and keep the intraday candles above this zone, a further supply reaction could take the index to the region of 17,350 points, where local minima are currently located after the dynamic declines of recent days and the measure of the 38.2% Fibo of the upward channel initiated in October 2023. Source: xStation
News:
Thyssenkrupp (TKA.DE) shares fell as much as 4.05%, a record low, after the German steelmaker reported third-quarter results that showed a significant drop in new orders and sales after three forecast cuts in recent months. The company maintained its EBIT forecast for the year above €500 million (analysts were expecting €532 million).
THIRD QUARTER RESULTS
- Adjusted EBIT 149 million euros, -39% y/y
- Adjusted EBIT from European Steel unit €100 million, -47% y/y, estimates €79.2 million
- Materials services adjusted Ebit 58 million euros, +16% y/y, estimates 53.6 million euros
- Automotive technology adjusted Ebit 78 million euros, +77% y/y, estimates 75.5 million euros
- Marine systems adjusted Ebit €30 million vs. €12 million y/y, estimates €23.9 million
- Net loss €54 million vs. profit €83 million y/y
- Sales €8.99 billion, -6.4% y/y, estimates €9.28 billion
- Revenue from European Steel unit €2.82 billion, -13% y/y, estimate €2.84 billion
- Sales of automotive technology €1.91 billion
- Marine systems sales €438 million, estimate €496.8 million
Hapag-Lloyd (HLAG.DE) is losing nearly 3% in today's session after the transportation company reported an Ebit margin of 9% (€813 million) for the first half of the year. The company's revenue was €8.80 billion and Ebitda was €1.82 billion. The company kept its annual forecasts for EBIT and EBITDA unchanged. Importantly, however, the company said that due to the highly volatile development of freight rates and severe geopolitical challenges, the 2024 forecast remains subject to a high degree of uncertainty.
ANNUAL FORECAST
- Ebitda of $3.5 billion to $4.6 billion, analysts estimated $3.89 billion
- Ebit of $1.3 billion to $2.4 billion, analysts estimated $1.61 billion
RWE (RWE.DE) shares are currently losing nearly 1.5%, after the company reported lower earnings for H1 due to declines in energy prices. The outlook for 2024 and the target dividend of €1.10 per share for the current fiscal year remain unchanged.Adjusted net income was €1.36 billion (down nearly 33% from last year).
ANNUAL FORECAST
- Adjusted Ebitda in the lower range of €5.20 billion to €5.80 billion, analysts estimated €5.35 billion
- Adjusted net income in the lower range of €1.90 billion to €2.40 billion, analysts estimated €2.07 billion
- Adjusted Ebit in the range of 3.20 billion euros to 3.80 billion euros, analysts estimated 3.31 billion euros.
Other news coming from individual companies in the DAX index. Source: Bloomberg Financial LP
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