- European stocks gain during Tuesday's session
- Infineon boosts sentiment in technology sector
- BNP Paribas posts nearly 16% rise in Q4 profits
- Rheinmetall with new government contract
European stock indices traded higher during Tuesday's session. The DAX is currently gaining 0.25% intraday on an intraday basis while France's CAC40 is adding 0.27% over the same period. Investor attention today turns to corporate news, quarterly results from Infineon and BNP Paribas, and JOLTS data from the US.
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Create account Try a demo Download mobile app Download mobile appVolatility currently seen in the European market. Source: xStation
Germany's DE40 index is gaining slightly today and is making up for some of the declines that took the stock below historical highs. The most important support for the index invariably remains the 50-day EMA (blue curve on the chart) and the recent peak broken out by the index in the 20,500-point zone. Technically, the DE40 continues to maintain a stable upward trend all the time. Source: xStation
News
Infineon (IFX.DE) shares are gaining nearly 10% today after the chipmaker raised its revenue forecast for next quarter, citing currency gains. This came against lowered expectations, given the slowdown in chips used in automotive and industrial applications.
SECOND QUARTER FORECAST
- Expected revenues of about €3.6 billion, forecast €3.42 billion
FIRST QUARTER RESULTS
- Revenue €3.42 billion, -7.5% y/y, forecast €3.21 billion
- Automotive revenue €1.92 billion, -8% y/y, forecast €1.8 billion
- Adjusted EPS €0.49, forecast €0.27
Rheinmetall (RHM.DE) has secured a multibillion-dollar contract from Germany's Bundeswehr armed forces for a tactical wide area network project for land operations. Orders against the project are valued at about €1.88 billion gross.
In the European banking sector, the results of BNP Paribas (BNP.FR) in particular caught investors' attention today. The bank posted a nearly 15.7% increase in Q4 earnings, largely driven by a 20% increase in investment banking results, driven by successful trading in the debt securities market. On the other hand, however, the company reports that earnings in 2025 may be lower. ROTE's return is expected to reach 11.5% in the new year, compared to earlier forecasts of 12%. The higher earnings allowed the company to raise its dividend by 4.1% and announce a €1.08 billion share buyback.
Other news from German companies. Source: Bloomberg Financial LP
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