DE40: DAX in the key support zone 💡

• European indices extend declines
• Kering drops more than 6% after earnings release 
• Nearly 9% bump on Stellantis shares 

General market situation:

Thursday's session on European stock markets is marked by a continuation of declines. Germany's DAX is trading at its lowest levels since early July this year and is currently losing 1.2%. At the same time, France's CAC40 is losing 2%. Investors' attention turns today to GDP data from the US. In addition to macro data, incoming quarterly results of companies remain key all the time.

Volatility currently observed in the broad European market. Source: xStation 

The German benchmark DE40 is trading nearly 1.22% lower during Thursday's session. The index is currently testing a key support level set by the 100-day EMA (purple curve on the chart). Breaking through the bottom of this zone and closing the intraday candle below could open the way to deeper declines set by the abolition of the 23.6% Fibo of the downward channel set by the upward impulse initiated in October 2023. Source: xStation

News: 

Kering's (KER.FR) shares lost as much as 6.2% today following disappointing results that included a warning that profit would fall in the second half of the year. The results exposed the challenges the French luxury goods maker faces in turning around its key Gucci brand amid a slowdown in the industry. 

SECOND QUARTER RESULTS

• Comparable revenue -11%, estimated -8.8%
• Gucci revenues on a comparable basis -19%, estimated -15.9%
• Yves Saint Laurent revenue on a comparable basis -9%, estimated -4.74%
• Bottega Veneta revenues on a comparable basis +4%, estimated +3.41%
• Other Chambers revenue on a comparable basis -5%, estimated -5.27%
• Eyewear and enterprise revenues on a comparable basis +5%, estimated +8.63%
• Revenues €4.51 billion, -11% y/y, estimated €4.67 billion

FIRST-HALF RESULTS 

• Comparable revenues -11%, estimate -9.36%
• Revenue €9.02 billion, -11% y/y, estimate €9.13 billion
• Gucci recurring operating income €1.01 billion, -44% y/y, estimate €966.9 million
• Yves Saint Laurent recurring operating income €316 million, -34% y/y, estimated €378.9 million
• Bottega Veneta recurring operating income 121 million euros, -28% y/y, estimated 144.1 million euros
• Other Homes Recurring operating income €44 million, -80% y/y, estimated €61.3 million
• Recurring operating margin 17.5%, 17.6% estimate
• Free cash flow from operations €1.1 billion, estimate €933.6 million

Aixtron (AIXA.DE) reported Ebit for the second quarter, which was below analysts' average estimates. The shares are currently losing more than 4%. 

SECOND QUARTER RESULTS

• Ebit €12.9 million, estimated €20 million 
• Revenue €131.8 million, estimate €131.3 million
• EPS EU0.1, estimate EU0.15
• Gross margin 37%, estimate 41.7%
• Net income EU11.2 million, estimate EU18.3 million

Stellantis (STLAM.IT) shares are losing more than 8.8% in today's trading after the company reported worse-than-expected quarterly results. Analysts at Citi say the carmaker's problems persist and see no real improvement until the inventory overhang is removed, which would put pressure on margins in the fiscal year.

FIRST-HALF RESULTS 

• Net profit 5.65 billion euros, -48% y/y, estimated 6.97 billion euros 
• Adjusted operating profit 8.46 billion euros, -40% y/y, estimated 8.94 billion euros
• Adjusted operating margin 10% vs. 14.4% y/y, estimated 10.3%
• Net revenues 85.02 billion euros, -14% y/y, estimated 87 billion euros
• Net revenues in North America 38.35 billion euros, -16% y/y, estimated 38.59 billion North American vehicle sales 838,000, -18% y/y, estimated 833,631
• Vehicle sales in expanded Europe 1.39 million, -6.2% y/y, estimated 1.38 million
• Vehicle sales in South America 394,000, -6.2% y/y, estimated 400,918
• Vehicle sales in the Middle East and Africa 214,000, +2.9% y/y, estimated 231,963
• Vehicle sales in China, India and Asia-Pacific 32,000, -45% y/y, estimated 39,790
• Maserati vehicle sales 6,500, -58% y/y, estimated 9,808
• Company maintains financial forecast for fiscal year

Other news coming out of individual DAX index companies. Source: Bloomberg Financial LP