DAX: DE40 gains slightly 📈Defense stocks lose, Puma and Adidas shares gain

• Futures on DAX (DE40) gain 0.3% today amid still strong sentiments on Wall Street and hope for a favorable deal with the United States 
• Puma (PUM1.DE) shares gain almost 4% driven by strong Nike (NKE.US) Q2 results, lifting stock 9%; Adidas also gains 
• Profit taking pressure German defense sector; Hensoldt (HAG.DE) drops 5%, Rheinmetall (RHM.DE) down 3%
• Yesterday, Trump and US Secretary of Commerce Howard Lutnick's remarks were welcomed as a positive sign for European businesses 

Despite upbeat commentary on NATO defence spending, German military stocks are under pressure today, with profit-taking hitting the sector hard. Rheinmetall is among the biggest losers on the DAX, while Hensoldt leads declines in the MDAX. This comes even as Hensoldt promotes its Indra radar system as a key performance upgrade for the Eurofighter jet — yet the stock is trading lower. Meanwhile, shares of RENK Group (RENK.DE), which opened higher this morning, have since reversed course and are now down nearly 2%.

DE40 (H1 interval)

The upward momentum on DAX continue, while DE40 stops the short-term correction at 23900 points level, at previous local high from 23 June.

Źródło: xStation5

Source: Bloomberg Finance L.P.

Source: Bloomberg Finance L.P.

Company news

• Citi analysts have downgraded their rating on brake system manufacturer Knorr-Bremse to Neutral, setting a target price of €92 per share. Meanwhile, shares of French company Schneider Electric rose after analysts at Oddo BHF reacted positively to the firm’s decision to reaffirm its full-year revenue outlook during an analyst call.

• Rheinmetall now trades almost 7% below its 52-week high, but well above its 52-week low of €435.30. The company’s market contributes almost 4% to the overall DAX index weighting. By comparison, SAP currently holds the highest market value on the DAX, with a capitalization of €293.57 billion. In its last full fiscal year, Rheinmetall posted revenue of €6.4 billion and net profit of €750 million.