- European market sentiment is noticeably weak today; U.S. technology sector loses after reports from Meta and Microsoft, shares of both companies losing nearly 4% in pre-market
- Airbus (AIR.DE) and flatexDEGIRO shares post gains; Zalando, Rheinmetall, Siemens and Knorr-Bremse shares under pressure
- Siemens (SIE.DE) with a takeover bid for US-based Altair Engineering for more than $10 billion; shares without much reaction to the deal
- Eurozone preliminary HICP inflation for October slightly above expectations (2% vs. 1.9% forecast and 1.7% previously)
- Financial markets await US PCE data scheduled at 12:30 PM GMT
Sentiment in the German stock market is weak today and did not stand out against Europe, where we mostly saw declines today. The strengthening of the yen has had an impact on Japan's Nikkei, and Chinese indices are also having a weaker session (disappointingly weak GDP data from Hong Kong). What's the most important is that declines are being seen in the U.S. stock market, where very solid reports from Meta Platforms and Microsoft brought unexpectedly nearly 4% declines for both companies shares in today's pre-opening trade, putting pressure on a number of technology sector. The market awaits the release of PCE inflation, benefit claims and U.S. household spending and income data for September.
Sentiment in the European stock market is mostly weak today. France's Total (TTE.FR) is losing close to 3%; U.S. Eli Lilly is also losing almost 2.7% to Novo Nordisk (NOVOB.DK) on a wave of declines. HICP inflation data from Italy and France also came in slightly above expectations. Source: xStation5
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DE40 (H1 interval)
The DAX (DE40) quotation appears to be pursuing a 1:1 correction scenario, and if the conditions for it are met, a rebound to 19700 points is not out of the question. The index reacted with a rebound after reaching the 61.8 Fibonacci retracement at 19,200 points.
Source: xStation5
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Among the companies in the DAX index, only Airbus actually stands out today. Siemens and Zalando lost the most. Source: Bloomberg Finance L.P.
News from companies
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U.S.-based Altair Engineering (ALTR.US) has agreed to accept a $10.6 billion takeover offer ($113 per share, 13% above ATH share prices) by Siemens AG (SIE.DE), whose shares are losing nearly 0.4% today. The acquisition is expected to help Siemens remain competitive in the market for industrial software and AI solutions
Great quarterly report for Airbus (AIR.DE)
Airbus maintained its target delivery calendar for 2024, despite market concerns about its supply chain. The market reacted positively to the news. The company delivered 497 aircraft this year and aims to meet its target of 770 deliveries this year.
- The company said it will focus on a major business transformation in the defence and space sectors. In the satellite sector, the company will lay off 2,500 employees by mid-2026. Earnings per share rose 22% y/y to €983 million; revenues up 5% y/y to €15.7 billion.
- Production of A320s is expected to reach 75 planes per month in 2027, and A220 models 14 planes per month, as early as 2026. Current A330 production is 4 planes per month, but the target is 12 A350s in 2028. Investors are reacting positively to the news, hoping for an increase in the company's scale in the coming years. Airbus is indirectly benefiting from the weakness of US Boeing.
The company's shares are struggling to sustainably exceed EUR 142 per share, where we see the 23.6 Fibo retracement of the 2020 upward wave. Source: xStation5
Recommendation changes
- Shares of broker flatexDEGIRO (FTK.DE) were upgraded to 'buy' by Goldman Sachs, with a target price of EUR 17 per share vs. the current price of EUR 13.2
- Shares of Hello Fresh (HFG.DE) were upgraded to 'neutral' by analysts at Switzerland's UBS
