DE40: DAX on ATH ahead of ECB, Deutsche Bank, H&M and Shell results in the background

• European stocks gain during Thursday's session
• DAX on ATH ahead of ECB decision
• Deutsche Bank results, H&M and Shell in the background

European stock indexes traded higher during Wednesday's session. The DAX is currently gaining 0.4% intraday while France's CAC40 is adding 0.6% over the same period. Investors' attention today turns to corporate news, companies' quarterly results and the ECB decision. 

Volatility currently seen in the European market. Most sectors are posting sizable gains today. Source: xStation

The German DE40 index today extends its previous bullish momentum and breaks out to new historical peaks. The most important support for the index invariably remains the 50-day EMA (blue curve on the chart) and the recent peak broken out by the index in the 20,500-point zone. Technically, the DE40 continues to maintain a stable upward trend all the time. Source: xStation

News

Deutsche Bank (DBK.DE) shares are losing nearly 5% today, after the bank's fourth quarter pre-tax profit missed estimates due to higher costs. The bank said it plans to reduce management roles and headcount in the coming years. 

FOURTH QUARTER RESULTS

• Revenue from sales and trading of debt instruments €1.90 billion, estimates €1.77 billion
• Common equity tier 1 ratio 13.8% vs. 13.7% y/y, estimate 13.6%
• Net income €7.22 billion, +8.5% y/y, estimates €7.18 billion
• Asset management revenue €709 million, +22% y/y, estimate €702.6 million
• Investment banking revenue €2.39 billion, +30% y/y, estimate €2.23 billion
• Private Bank revenues €2.36 billion, -1.5% y/y, estimated €2.37 billion
• Corporate Bank revenues €1.86 billion, -2.5% y/y, €1.85 billion estimate
• Net profit €106 million, -92% y/y
• Profit before tax €583 million, -16% y/y, estimated €1.12 billion
• Adjusted expenses €5.30 billion
• Provision for credit losses €420 million, -14% y/y, estimated €422.9 million
• Non-interest expenses €6.22 billion, +14% y/y, estimated €5.63 billion

Shell (SHELL.NL) shares are up 1.3% today following the release of quarterly results. Operating results offset a decline in profit, and the oil company itself also raised dividends and maintained share buybacks. 

FOURTH QUARTER RESULTS

• Adjusted profit $3.66 billion, -50% y/y, estimates $4.36 billion 
• Adjusted EPS 60c vs. $1.11 y/y, estimates 68c
• Adjusted Ebitda $14.28 billion, -13% y/y, $14.15 billion estimate
• Revenue $66.28 billion, -16% y/y, estimates $65.11 billion
• Oil and gas production 2.82 million boe/d, -0.4% y/y
• Chemical sales volume 2.93 million tons, +13% y/y, estimates 2.98 million tons
• Dividend per share 35.80c vs. 34.40c q/q, estimates 35.72c
• Cash flow from operations $13.16 billion, +4.7% y/y, estimates $11.23 billion
• Debt ratio 17.7% vs. 15.7% q/q, forecast 16.5%

Hennes & Mauritz (HMB.SE) shares lose 4.5% after fourth quarter sales, missed analysts' consensus. 

FOURTH QUARTER RESULTS

• Operating profit SEK 4.62 billion, +6.7% y/y, forecast SEK 4.3 billion 
• Sales SEK 62.19 billion, forecast SEK 63.48 billion
• Gross profit SEK 33.94 billion, forecast SEK 39.98 billion
• Gross margin 54.6%, estimate 53.3%
• Operating margin 7.4%, estimated 6.79%

COMMENTS

• Company aims to maintain investment levels compared to last year
• H&M sales from Dec. 1 to Jan. 28 higher by 4% y/y in local currencies
• H&M's board of directors will ask the AGM for approval to repurchase B shares

Other news from major German companies. Source: Bloomberg Financial LP