DE40: Markets Rebound After Yesterday’s Drop, Daimler Gains on Earnings, BMW drops

• European stock markets are skewed to the upside today with most of the major indices in the green, led by W20 (+1.41%) and AUT20 (+1.25%), while SUI20 declines

• Daimler Truck Gains 4.85% as Forecasts Remain Stable for 2025 

• BMW Shares Drop 2% on Lower Margin Guidance and China Challenges

• UniCredit Receives ECB Approval for Potential Commerzbank Stake Increase

European markets are green today, with most indices in positive territory but VSTOXX and SUI20 declining. The volatility index VSTOXX shows the largest decline at -2.55%, while SUI20 is marginally down by -0.03%. Most other indices are posting gains, with W20 leading at +1.41% and AUT20 following at +1.25%. Other positive performers include EU50 (+0.85%), FRA40 (+0.84%), DE40 (+0.57%), and SPA35 (+0.51%). UK markets are also in positive territory with UK100 up 0.36%. Italian markets are showing gains with ITA40 up 0.48%, while Dutch markets are also performing well with NED25 up 0.59%. The German DAX (DE40) is trading at 22656.6 points, while the French CAC 40 (FRA40) stands at 7990.9.

Dax Returns by Sector. Source: Bloomberg Financial LP

Volatility is currently observed in the broader European market. Source: xStation

The German DE40 Index is attempting to regain bullish momentum after retesting the 78.6% Fibonacci retracement level. Bulls will aim to recapture the ATH at 22,996, while bears will look for a move below the 78.6% Fibonacci retracement level and a test of the 30-day SMA at 22,479. The RSI is on track to break bearish divergence if the current high surpasses the previous high. The MACD is starting to tighten after a bearish crossover. Source: xStation

News

• Daimler Truck Gains 4.85% as Forecasts Stable 2025 Performance Amid Cost-Cutting Plans - Daimler Truck AG expects Industrial Business revenue between €52-54 billion in 2025 and announced €1 billion cost reductions at its Mercedes-Benz Trucks unit by 2030. Fourth-quarter adjusted EBIT fell 29% to €1.10 billion while revenue declined 4% to €14.35 billion. For 2025, Daimler projects unit sales of 460,000-480,000 vehicles and adjusted EBIT growth of 5-15%, with an unchanged dividend proposal of €1.90 per share.

• BMW Shares Drop 2% on Lower Margin Guidance and China Challenges - BMW AG shares fell 4.5% after forecasting automotive margins of 5-7% for 2025, below its long-term 8% target. Fourth-quarter EBIT plunged 57% to €1.88 billion with sales down 15% to €36.42 billion. The company faces €1 billion in costs from US and EU tariffs while struggling with a 13.4% sales decline in China.

• Mercedes-Benz Unveils Affordable Electric CLA Sedan to Challenge Tesla - Mercedes-Benz Group AG has introduced its most affordable electric sedan yet, the CLA, expected to start around €50,000 with sales beginning in early summer. The new EV will offer a range of up to 792 kilometers and feature Mercedes' latest software technology. The CLA carries a €10,000 premium over Tesla's similarly sized Model 3 but may benefit from shifting attitudes toward Elon Musk over his polarizing politics.

• UniCredit Receives ECB Approval for Potential Commerzbank Stake Increase - UniCredit SpA has obtained regulatory permission from the European Central Bank to own up to 29.9% in Commerzbank but extended its decision on whether to seek an acquisition "well beyond the end of 2025." The Italian lender currently holds 18.5% in Commerzbank through derivatives and requires several further approvals before converting these into physical shares. The potential purchase has triggered political backlash in Germany, where the government still owns about 12% of Commerzbank. Commerzbank gains 2% on the news.

Other news coming from individual DAX index companies. Source: Bloomberg Financial LP