DE30: European equities under downward pressure, DE30 tests support of 15,800 points!

• DE30 loses more than 1.5% and tests the barrier at 15,800 points 

• Company results: Fraport (FRA.DE), Bayer (BAYN.DE)

• NovoNordisk (NOVOB.DK) shares at historic highs after new study of drug Wegova

Tuesday's session on European markets brings clear declines in the quotations of European benchmarks. The reason for such large sell-offs today is mainly due to the reaction to weak trade data from China and the wave of panic in Italy, where banks there are recording sizable declines after the decision to introduce a 40% tax on extraordinary profits. 

The mood in Europe weakened markedly during Tuesday's trading session. Sectors trying to resist the downward pressure are now pharmaceuticals (excluding Bayer (BAYN.DE)).  Source: xStation 5

Futures based on the German DE30 are breaking out to the downside towards the 15,800-point barrier, thus recording close to 1.5% declines on a daily basis. Source: xStation 5

News

Fraport (FRA.DE) shares are gaining nearly 6% today following the publication of better-than-expected quarterly results. For the first half of the year, EBITDA came in at €481.4 million against expectations of €475.7 million, revenues were €1.8 billion against expectations of €1.67 billion. For Q2 alone, the company's revenue was €1.04 billion against the expected €918.3 million. 

Passenger numbers at Frankfurt this year are expected to reach the mid-range of the previously stated forecast of at least 80% to 90% of the traffic recorded in 2019. In terms of earnings forecasts, the company's EBITDA is expected to reach the upper end of the previously forecast range of €1.04 billion to €1.2 billion. 

Source: xStation 5

Market sentiment is much weaker on Bayer (BAYN.DE) shares. The company has lowered its revenue forecasts for the Crop and Pharmaceuticals unit (given the result warnings issued last month). Crop unit revenue levels are expected to fall by 5% this year due to weaker momentum in glyphostat sales (previously forecast to rise by 3%). 

As reported by analysts Morgan Stanley and UBS, today's declines are largely dictated by the lack of consensus adjustment following the earnings warning issued a month ago. 

Details of the company's earnings report. Source: Bloomberg Finance L.P.

Major percentage changes in individual companies of the DAX index. Source: Bloomberg Finance L.P.

Information from individual companies in the DAX index. Source: Bloomberg Finance L.P.