DE40: DAX wipes out post-US CPI optimism

• AlphaValue downgrades Porsche stock
• Investors fear maintenance of hawkish Fed bankers' stance 

General market situation:

Thursday's trading session on the German stock market brings slightly worse investor sentiment. On the cash market, the DAX is currently losing 0.27%, France's CAC40 is down 0.4%, and the UK's FTSE 100 is losing nearly 0.1%. Despite the great sentiment observed yesterday (the effect of a lower CPI reading in the US), a slightly more conservative sentiment is highlighted in the market today. 

This may be largely due to the anticipation of comments from Fed bankers. A lower CPI reading may not be enough for bankers to permanently change their stance toward a faster pace of cuts, so it is not unlikely that along with concerns about such a turn of events, we are seeing a fair amount of uncertainty in the markets today. 

European companies traded at mixed levels during Thursday's trading session. Source: xStation 5

Volatility currently observed in the DAX index. Source: Bloomberg Financial LP

Germany's benchmark DE40 is down 0.3% during today's session, but nevertheless continues to hold near the zone of historical peaks. In the medium term, after breaking through this barrier, the most important support zones that may be key to maintaining the uptrend are the uninterrupted zone of the last peak near 18,800 points, the double peak in the zone of 18,400 points and the 50-day exponential moving average (blue curve on the chart). Source: xStation 5

News:

Porsche (P911.DE) shares came under downward pressure following a downgrade recommendation by AlphaValue to “reduce.” The company lowered its sales forecasts by 7% for fiscal 2024 and 5% for fiscal 2025, and its Ebit estimates by 20% and 11% for the same two periods. AlphaValue cites the company's high cost risk as the main reason for the downgrade recommendation. According to data tracked by Bloomberg, Porsche did not have a sell rating or equivalent prior to the downgrade.

Siemens (SIE.DE) shares are losing nearly 5% today following the release of mixed Q2 results and the downgrade of annual forecasts for several performance measures. 

Q2 RESULTS

• Net income €2.20 billion, -38% y/y, analysts estimated €1.69 billion
• EPS €2.73 vs. €4.57 y/y, analysts estimated €2.25
• Comparable revenue 0%, analysts estimated +2.06%
• Revenue €19.16 billion, -1.3% y/y, analysts estimated €19.54 billion
• Industrial revenue €17.91 billion, -1.2% y/y, analysts estimated €18.21 billion
• Digital industry revenue €4.51 billion, -13% y/y, analysts estimated €4.65 billion
• Revenues in Intelligent Infrastructure €5.15 billion, +4.9% y/y, analysts estimated €5.23 billion
• Revenue in the Mobility division €2.82 billion, +5.9% y/y, analysts estimated €2.87 billion
• Revenues from portfolio companies €1.11 billion, -6.2% y/y, analysts estimated €1.21 billion
• Orders 20.45 billion euros, -13% y/y, analysts estimated 21.07 billion euros
• Orders in the industrial sector 19.22 billion euros, -14% y/y, analysts estimated 19.42 billion euros
• Digital industry orders €4.25 billion, -14% y/y, analysts estimated €4.25 billion
• Smart infrastructure orders €6.09 billion, +10% y/y, analysts estimated €5.67 billion
• Mobility orders €3.16 billion, -49% y/y, analysts estimated €3.56 billion
• Free cash flow €1.34 billion, -43% y/y

ANNUAL FORECAST

• Company still forecast EPS of €10.40 to €11, analysts estimated €10.45
• Company still forecast comparable revenue +4% to +8%, analysts estimated +4.61%
• Digital profit margin +18% to +21%, the company's previous guidance +20% to +23%, analysts estimated +20.4%.
• Comparable digital revenue -4% to -8%, 0% to +3% the company expected in its guidance, analysts estimated -2.27%

Evonik (EVK.DE) shareholder RAG-Stiftung offers nearly 23 million shares in a deal targeting large investors.  The Bloomberg agency's price forecast is around 19.99 euros. The company's shares are losing 3.4% today and are currently trading near the €20 per share zone. 

Other news coming out of German companies. Source: Bloomberg Financial LP