- Volvo and EsillorLuxottica with Q3 results
Overall market situation:
This week's last session on European stock markets brings gains for most stock indexes. Germany's DAX is currently up 0.2%. Britain's FTSE 100, meanwhile, is losing more than 0.31%. France's CAC40, meanwhile, is up 0.6%. Investor attention today turns to corporate news and speeches by Fed bankers.
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Volatility currently observed in the broad European market. Source: xStation
Germany's benchmark DE40 is trading nearly 0.24% higher during Friday's session and is back in the region of historical highs. It seems that the key support/resistance points of the broad uptrend remain the 19,000-point zone, the 50-day EMA (blue curve on the chart) and the historical peak just broken out, which is now the main control zone for the supply and demand sides. Source: xStation
News:
Volvo (VOLVB.SE) forecasts stagnant demand next year. The company reported a larger-than-expected decline in quarterly adjusted earnings, after reduced transportation and construction activity curbed vehicle sales. Adjusted operating profit for the third quarter was 14.1 billion crowns, compared with 19.3 billion a year earlier and the average analyst forecast of 15.6 billion. Orders for heavy trucks fell 7% year-on-year in the third quarter.
EssilorLuxottica (EL.FR) also reported slightly worse-than-expected financial results today. The eyeglasses manufacturer booked lower-than-expected revenue in constant currency relative to analysts' expectations. However, the data did not cause the stock to fall too much, in view of recent sell-offs correlated after LVMH's results, which suggested a worse reading. Revenues in constant currency rose 4% against expectations of 5.28%. Moreover, data from China was good, suggesting that the company is able to win customers in the East (up 4.5%) despite challenging macro conditions.
Fashion companies themselves, which are closely tied to Chinese sentiment today, are gaining ground. This is mainly related to the Chinese establishment's announcement on Monday to cut lending rates.
Source: xStation
Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP
