There is relative optimism on European financial markets today, as there was yesterday, although the scale of gains at the start of the day has already been largely limited. Nevertheless, the DE40 is losing between 0 and 0.05% today and is once again testing the 50-day EMA barrier. Fuel companies and banks are performing relatively well today. The calendar for the second part of the session does not contain any readings that could significantly increase market volatility. For this reason, investors will focus on incoming political news and quarterly company results.
Source: xStation
Current volatility observed on the broader European market. Source: xStation
The German DE40 index is down 0.05% in today's session and is once again testing the support zones set by the 50-day exponential moving average (blue curve on the chart). As long as the DE40 remains above these zones, the overall long-term upward trend remains sustainable. However, a sustained break above the aforementioned 50-day EMA, which previously weakened the medium-term upward trend, may prove crucial for this recovery. Source: xStation
Market news
Zalando (ZAL.DE) lowered its full-year revenue forecast, causing its shares to fall by as much as 8.5%, even though it raised its operating profit (EBIT) forecast. Morgan Stanley analysts point out that the market consensus had already lowered its expectations due to weaker industry trends, while Metzler highlights the disappointing gross margin. Zalando reported growth in gross sales volume and revenue in the second quarter and forecasts moderate growth in the second half of the year. Bank of America remains positive about the company due to its growing e-commerce market penetration and synergies from the acquisition of About You. For more information, please see our previous post.
Siemens Energy (ENR.DE) forecasts full-year sales growth in the upper range of +13% to +15% and a profit margin before one-off items of 4–6%, with the latter expected to be closer to the upper end of the range. In the third quarter, the company's revenues amounted to EUR 9.75 billion (+11% y/y), and individual segments, such as Gas Services and Grid Technologies, recorded strong growth in revenues and profits, clearly exceeding market expectations. On the other hand, the Siemens Gamesa Renewable Energy sector continues to generate losses, although they are slightly higher than analysts' estimates. Total orders increased by as much as 60% y/y to €16.61 billion, and net profit reached €697 million compared to a loss a year earlier, confirming the improvement in the company's financial and operating situation. The company's shares are down nearly 9% today.
Commerzbank (CBK.DE) raised its net interest income forecast for the whole year to around €8 billion and submitted a request to buy back up to €1 billion of its own shares. The bank expects net profit of around €2.5 billion, with credit loss provisions remaining at €850 million. In the second quarter, net profit amounted to €462 million (well above market expectations), while revenues reached €3.02 billion (+13% y/y), recording improved efficiency and lower losses on the loan portfolio. The CET1 ratio is expected to remain at least 14.5% after the planned capital return, and the bank expects to complete negotiations on job cuts by the fall. The bank's shares are currently down 0.5%.
News from companies listed on the German stock exchange. Source: Bloomberg Financial Lp
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