- Positive sentiment in the European stock market and gains in U.S. contracts support the DAX
- Continental (CON.DE) and Sartorius (SRT.DE) continue the rally of recent days, supporting DAX
- Shares of Aixtron (AIXA.DE) are trading 16% higher today. A rally at semiconductor company supported the stock price of Infineon (IFX.DE), a supplier of industrial semiconductor chips; shares gain more than 3%
- Varta (VAR1.DE) gains almost 23% as Porsche (P911.DE) consider investment in battery unit its business
- Leonardo (LDO.IT) deal failed to support Rheinmetall (RHM.DE) shares; arms giant retreats 1% from historic highs
- Weak data from German industry; industrial production well below forecasts; mixed retail sales reading in Eurozone
Today's session on global markets support gains for most European benchmarks. Futures on the DAX (DE40) are trading close to 0.7% up, ahead of key data from the U.S. labour market, scheduled for release at 1:30 PM BST.
Macro data
- Eurozone retail sales rose 0.3% vs. 0.2% forecast and 0% previously (m/m growth was 0.1% vs. 0.2% forecast and -0.5% previously
- German industrial production fell -6.7% y/y vs. -4.3% expected decline and -3.8% previously (-2.5% m/m vs. 0.1% forecasts and -0.1% previously.
DE40 (D1 interval)
Looking at the daily interval, DAX (DE40) contracts have risen above the 50-session SMA50 average. The main resistance level is invariably 19,000 points.
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Source: xStation5
In recent sessions, buyers definitely prevailed on the DE40, managing to push the index nearly 600 points higher over the past three sessions.
Source: xStation5
Among Germany large caps, Porsche (P911.DE) is today the strongest, listed company with more than 3% gain. Source: Bloomberg Finance L.P.
Aixtron (AIXA.DE) surges 16%
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Shares of Aixtron (AIXA.DE), a supplier of semiconductor manufacturing equipment and hardware, gained as much as 16% today, the most since October 2018, after the company positively surprised in the second quarter in terms of results. Although full-year forecasts were lowered, the reduction was relatively small and appears to have been priced in by the market, according to Morgan Stanley. The comments were also echoed by Jeffries analysts today.
ANNUAL FORECAST
- Forecast revenue of €620 million to €660 million, on a forecast of €630 million to €720 million, on an estimate of €660.6 million
- Forecast EBIT margin: approx. 22-25%, forecast: approx. 24-26%, estimated: 23.8%.
Source: xStation5
Yesterday, Varta (VAR1.DE) announced that a non-binding letter of intent had been signed between the company and the Porsche, which is interested in V4Drive battery segment. Financial details are still unknown. Varta informed that the result will depend on examination of business documents by Porsche. Investors see this situation as a chance for the same deal, with Volkswagen, in the future.
Varta (VAR1.DE, interaval D1)
Source: xStation5
