DE40: European stocks gain slightly in the first phase of Friday's session

• European indices gains slightly at the end of the week
• Inflation continues to be the No. 1 topic, with US PPI data and UoM data ahead
• Rheinmetall AG expects sales to rise 40% this year as governments around the world increase defense spending

Overall market situation:

This week's last session on European financial markets is marked by increases in most stock market indices. However, their scale is not very large, which is mainly due to yesterday's retreat on the Nasdaq index. Investor attention today turns to PPI data and UoM forecasts in the context of inflationary pressures. Moreover, investors will turn their attention to the results of Wall Street banks, which will officially start the earnings season for Q2 2024. 

Volatility currently observed in the DAX index. Source: Bloomberg Financial LP

Volatility currently observed in the broad European market. Source: xStation

Germany's benchmark DE40 is trading nearly 0.4% higher during the first phase of Friday's session. The whole index is trying to negate the structure of the downtrend initiated on May 16. The continuation of the downtrend led to the testing of a historically important support level in the zone of the 100-day exponential moving average (purple curve on the chart, all the while it remains a key support point). Locally, the most important resistance, after piercing the 50-day EMA (blue curve), is now the zone of the peak of July 5 (combined with the peak of April 2 this year, the zone of 18840 points). A possible breakthrough of this zone could encourage the demand side to test the historical peaks in the 19,000-point zone. Source: xStation

News:  

Rheinmetall AG (RHM.DE) expects sales to increase by 40% this year as governments around the world increase defense spending, CEO Armin Papperger said in an interview with the Frankfurter Allgemeine Zeitung. 

Production is currently sufficient to meet Ukraine's needs, "but we will still need another 10-15 years to fill the warehouses of the Bundeswehr and our partners," he - the CEO added.

"The order book should reach 60-70 billion euros by the end of the year. This will keep us busy for six to seven years." - the commentary concluded. 

Skanska (SKAB.SE) has signed a contract with a railroad customer in the northeastern United States worth about SEK 6.7 billion. The project will be included in U.S. order bookings for the second quarter of 2024. Expected completion in 2027. Shares are currently gaining 0.5%. 

Analysts at HSBC have lowered their recommendation for International Consolidated Airlines Group SA (IAG.UK) to "hold" from "buy."

Goldman Sachs analysts lowered their recommendation on Diageo Plc (DGE.UK) to "sell" from "neutral."

Shares of Brunello Cucinelli (BC.IT) are currently losing nearly 1.5% after the Italian luxury goods maker's earnings met expectations, but were not enough to add fuel to this year's stock rise, given that forecasts were not raised.

FIRST-HALF RESULTS

• Net revenues €620.7 million, +14% y/y, estimates €617.8 million 
  Revenues in Europe €221.1 million, +9% y/y
  Revenues in the Americas €225.6 million, +19% y/y
  Revenues in Asia 174.0 million euros, +14% y/y

COMMENTARY

• Company confirms sales growth of about 10% in 2024
• Expects sales growth in 2025 of about 10%
• According to Brunello Cucinelli, executive chairman and creative director, the company confirms "projected sales growth in 2024 of around 10%, as well as corresponding profits."
• Brunello Cucinelli forecasts for 2025. "a healthy growth of about 10%."
• Turnover up 14.7% at constant exchange rates

Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP