DE30: Bayer drops after quarterly report release

• DE30: Bayer drops after quarterly report release,

• Allianz (ALV.DE) plans share buyback worth up to €1.5 billion

• Bayer (BAYN.DE) under pressure due to quarterly results

Thursday's trading session on European markets brings better moods among investors, who were satisfied with the lower inflation reading in the US yesterday and the lower inflation reading in China. The German DAX (DE30) is recording slight gains today, but still remains below the psychological level of 16,000 points. Investor attention is focused today mainly on the reading of jobless claims and PPI inflation from the US.

 The mood in Europe during Thursday's trading session is relatively positive. Source: xStation 5

News:

A survey conducted by the European Central Bank showed an increase in inflation expectations despite recent HICP readings from the EMU and interest rate hikes, which could put pressure on prices in the economy in the future. However, it is worth remembering that these predictions were collected in March, which may slightly distort the actual state of affairs at present. Nevertheless, the median forecast predicts a 5% increase in prices compared to the previously expected 4.6% (forecasts for the next 12 months). Higher readings also showed long-term expectations, where inflation is expected to reach 2.9% within 3 years, compared to the previous 2.4%.

Allianz (ALV.DE) shares are trying to recover some of yesterday's losses after the announcement of a planned share buyback worth up to €1.5 billion. The program is expected to start at the end of May 2023 and last until the end of this year. The company will present its quarterly results tomorrow.

Shares of Bayer (BAYN.DE) are down over 5% during today's session due to the release of worse-than-expected quarterly results. The worse results are primarily due to poor performance of the pharmaceuticals' division, especially the Xarelto drug. Moreover, Bayer predicts that EBITDA for the whole year will reach the lower end of the range of the company's previous expectations.

Detailed company results. Source: Bloomberg

Deutsche Telekom (DTE.DE) also reported its results, with shares rising almost 2% following the publication. Results for Q1 exceeded analyst expectations. Furthermore, the company raised its full-year forecasts for adjusted EBITDA, free cash flow, and net customer numbers.

Changes in institutional holdings in individual companies in the DAX index (data from the last session). Source: Bloomberg

The largest percentage changes and information on individual companies in the DAX index. Source: Bloomberg

DE30 chart

Futures based on the German DAX (DE30) index are recording moderate gains today, but still remain below the psychological level of 16,000 points. Source: xStation 5