- European indices stop the upward wave
- LVMH's results put pressure on companies from the luxury goods sector
- flatexDEGIRO with better than expected quarterly results
General market situation:
Wednesday's session on European stock markets is marked by declines. The German DAX erases some of the gains from the beginning of the week and is currently losing 0.7%. At the same time, the French CAC40 loses 1.03%. Investor attention today turns to the BoC's decisions, as well as the reaction to the results of Alphabet and Tesla. In Europe, high volatility is observed mainly in shares from the luxury goods sector, which is due to the worse-than-expected results of LVMH.
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Volatility currently observed in the broad European market. Source: xStation
The German benchmark DE40 is trading nearly 0.64% lower during Wednesday's session. The index remains above the key barrier zone marked by the 50-day exponential moving average (blue curve on the chart). An upward break could theoretically open the way to testing the zone of local peaks near 18,930 points in the medium term. The area marked by the 100-day EMA (purple curve on the chart) remains the most important support level. Source: xStation
The news:
Deutsche Bank AG (DBK.DE) is no longer planning a second share buyback this year after a provision linked to its Postbank unit caused its first quarterly loss in four years, Chief Financial Officer James von Moltke said in an interview on Bloomberg TV.
Shares of Banco Santander (SAN1.ES) are up 2.3% today, the best performer on the Stoxx 600 Banks Index, after the Spanish bank posted a second-quarter net profit that beat market expectations and improved prospects for productivity and revenue growth for the entire year.
SECOND QUARTER RESULTS
- Net profit 3.21 billion euros, estimated 3.13 billion euros
- Net profit of Digital Consumer Bank EUR 1.07 billion
- Net profit of retail and commercial banking EUR 3.33 billion
- Net profit from property management and insurance 818 million euros
- Net profit from corporate and investment banking โฌ1.41 billion
- Net provision for credit losses โฌ3.12 billion, estimated โฌ3.26 billion
- Net interest income EUR 11.47 billion, estimated EUR 11.9 billion
- CET1 index at full load 12.5%, estimated 12.3%
- Non-performing loan ratio 3.02%, estimated 3.21%
- Customer deposits amount to 1.04 trillion euros, estimated 1.01 trillion euros
- Operating costs โฌ6.37 billion, estimated โฌ6.63 billion
ANNUAL FORECAST
- Return on physical capital above +16%, previously estimated +16%, analysts expected +14.8%
- Efficiency rate 42%, previously estimated at 43%, analysts expected 43.5%
Broker flatexDEGIRO (FTK.DE) published second-quarter results above analyst expectations. The company maintained its forecasts for the entire year. Citi and Jefferies banks believe that this decision may be considered conservative and lead to an increase in these forecasts in the second half of the year.
SECOND QUARTER RESULTS
- Revenues EUR 118.7 million, +31% y/y, estimated EUR 113.4 million
- Ebitda EUR 52.9 million, estimated EUR 52 million
FORECASTS
- The company expects revenues to increase by up to 15% in 2024
- The company expects net profit to increase by up to 50% in 2024
Other news coming from individual DAX index companies. Source: Bloomberg Financial LP
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