- European markets make clear gains
- LVMH (MC.FR) will present quarterly results after the session close
Overall market situation:
Tuesday's trading session on European markets brings an improvement in investor sentiment. At the moment, almost all sectors of the economy are recording clear gains, and the only industry that is losing is freight companies. LVMH (MC.FR) will present its results after the end of today's session, and it is this company that may draw investors' attention.
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Tuesday's session on European stock markets is dominated by market bulls. The only sector doing noticeably weaker is shipping, and in particular the companies Hapag Lloyd (HLAG.DE) and Maersk (MAERSKB.DK). Source: xStation 5
Futures based on the German DE30 index are trading close to 1% up intraday. Currently, the benchmark is testing the resistance set by the 200-day exponential moving average (golden curve). Source: xStation 5
News:
LVMH (MC.FR) will present its quarterly results today after the French trading session. Analysts expect LVMH's earnings to continue to grow strongly, but there are a number of factors weighing on the company that could halt investor optimism.
First and foremost, investors will be watching closely to see how the U.S. market performs in the quarter, following a 1% drop in sales in Q2 and continued rumors of a slowdown. Similar uncertainty also weighs on sales data from Europe and China.
Despite this, French luxury companies such as LVMH are expected to maintain profitability due to various growth factors (strong brand positioning, appeal among younger generations and broad changes in the companies' internal culture).
It is the sales data from the respective markets and their dynamics that will determine whether current valuations of companies below historical averages are justified. JP Morgan points out that Richemont, Moncler and Hermes are likely to react in a big way to the results themselves.
Source: xStation5
Fashion companies are currently posting sizable gains. Source: xStation 5
UBS bankers said that the balance sheets of the UK's largest banks are in good shape, nevertheless this does not mean that investors should expect institutions such as Barclays, HSBC, NatWest and Standard Chartered to expand their share buyback program in the near term.
The mood in today's session is also largely driven today by a broad rebound in the listings of companies in the travel, aviation and leisure sectors.
Source: xStation 5
