- German DAX breaks new ATH
- Fashion leads growth in Europe
- DHL on the wave of the management statement
General market situation:
Monday's session on European stock markets brings good sentiment among investors. The German DAX is currently gaining 0.78%. The British FTSE 100 adds 0.31%. At the same time, the French CAC40 is gaining 1.5% and is the leader thanks to powerful gains in the fashion sector. The DAX broke out to new historical highs today. Investors' attention is turning today to companies closely linked to China, where, on the wave of new stimulus measures introduced by the PBoC, expectations of a better situation on the global market are growing.
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Volatility currently observed on the broad European market. Source: xStation
The German benchmark DE40 is trading close to 0.40% higher during Tuesday's session. The index based on futures is reaching new historical highs today. It seems that the key support points for the broad upward trend remain the zones of recent peaks and the 50-day EMA (blue line on the chart). Source: xStation
News:
Tuesday's session is marked by a powerful rebound in the quotations of all companies strongly linked to the Chinese market. First of all, fashion, which is largely dependent on the demand of Chinese consumers, is doing well. The largest increases currently belong to those companies that, in percentage terms, most depend on this region for their sales. We are talking primarily about Hermes (RMS.FR), which is gaining 4.6%, and Richemont (CFR.CH), which is adding 4.5%.
Source: xStation
Illustrative values of sales exposure of individual brands in China. Source: Bloomberg Financial LP
The “stimulus” measures announced by the PBoC at the Beijing conference are also boosting sentiment around cyclically driven assets, such as container shipping stocks like Maersk (MAERSKB.DK), Hapag-Lloyd (HLAG.DE), ZIM (ZIM.US) and bulk carrier operators like Star Bulk Carriers (SBLK.US), which is up almost 4% in pre-market trading in the US. Mining stocks like Polish KGHM (KGH.PL) are also doing very well.
The automotive sector is also seeing a rebound. Source: xStation
Deutsche Post (DHL.DE) said it plans to distribute at least 40% of its net profit to shareholders and that it is on track to meet its full-year targets. The company has bought back 2.8 billion euros ($3.11 billion) of shares under its current share buyback program so far, it said. In March, the company increased its program from €1 billion to €4 billion and extended it to 2025. The company aims to achieve a 50% increase in revenue by 2030 compared to 2023 by creating standalone corporate entities for its postal and parcel services in Germany. The company’s shares are currently gaining 1.5%.
Other news from individual DAX companies. Source: Bloomberg Financial LP
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