- European indices trade slightly lower
- DE30 continues to pull back
- Telefonica Deutschland jumps over 30% on takeover bid
European stock market indices are trading lower following a downbeat Asia-Pacific session earlier today. German DAX drops 0.1%, French CAC40 is 0.3% down, Dutch AEX trades flat while UK FTSE 100 gains 0.1%. Economic calendar for today is light. There are some speeches from ECB and Fed members scheduled for the afternoon but no major data releases of note. Earnings continue to play a key role on the stock markets but Telefonica Deutschland stands out today with over-30% gain on the back of an announced takeover offer.
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Taking a look at DAX futures chart (DE30) at H1 interval, we can see that the index continues a recent pullback and is testing the 15,150 pts support zone today. The first attempt to break below it turned out to be a failure but the index struggles to break to new daily highs and another attempt cannot be ruled out. Should we see a break below, the next supports to watch are marked with 38.2%, 50% and 61.8% retracements of the upward move launched at the end of October 2023. The zone marked with 50% retracement seems to be the most important as not only it is in the psychological 15,000 pts area but it is also marked with 200-hour moving average.
Company News
Daimler Truck (DTG.DE) trades 4% lower after reporting Q3 2023 earnings. Company reported revenue at $13.86 billion, up 2.6% YoY but below $14.1 billion expected. Adjusted Ebit at €1.34 billion was also lower than €1.41 billion expected, with Trucks North America unit missing sales and profit expectations the most. Company confirmed 2023 guidance and says it expects full-year return on sales in its industrial business to be in the 8.5-10% range.
Fraport (FRA.DE) trades 3% higher after reporting Q3 2023 earnings. Company reported 20% YoY jump in revenue to €1.22 billion (exp. €1.23 billion) as well as 14% YoY increase in EBITDA, to €478.1 million (exp. €447 million). Net income was 80% YoY higher at €272 million. Company expects full-year EBITDA to come in near the upper end of its €1.04-1.20 billion forecast range and net income at the upper end of the €300-420 million forecast. Company said that passenger numbers in Frankfurt are expected to reach up to 90% of pre-Covid levels in full-2023.
Daimler Truck (DTG.DE) dropped below the €29.25 support zone at the beginning of today's trading and is now testing the lower limit of the Overbalance structure in the €28.60 area. A drop below this hurdle would, at least at theory, a trend reversal. Source: xStation5
Telefonica Deutschland (O2D.DE) rallied over 30% today after Telefonica SA (TEF1.ES), its parent company, announced a takeover bid. Telefonica offers to buy remaining shares in its German unit and take it private. PRoposed takeover price of €2.35 is over 35% higher than yesterday's closing price.
Schaeffler (SHA.DE) is trading a touch higher today after reporting Q3 2023 earnings. Company reported 4.2% YoY drop in revenue to €4.06 billion (exp. €4.1 billion) as well as 4.2% YoY drop in adjusted Ebit to €340 million (exp. €293.7 million). Ebit margin at 8.4% was higher than 7.1% expected. Adjusted free cash flow dropped 24% YoY to €182 million. Company still expects full-year revenue growth of 5-8% and full-year free cash flow of €300-400 million.
Telefonica Deutsche (O2D.DE) launched today's trading with a massive bullish price gap after its parent company Telefonica offered to buyout remaining shares. Stock continued to gain after session launch but advance was halted at the 200-session moving average (purple line) in the €2.40 area. Source: xStation5
