DE40: European weakness continues, Douglas shares plummet

• European stock markets are skewed to the downside today with most of the major indices in the red

• Airbus Upgraded to Hold by Berenberg

• Adidas declines as Nike shows weaker outlook

• Douglas Shares Plummet After Profit Warning

Most European indices are in the red as weakness persists. The DE40 is down 0.85%, the French FRA40 has dropped 0.7%, and the British UK100 is dipping 0.5%. The AUT20 is down 4.1% after the contract rollover, while the new contract trades 1.2% lower.

Dax Returns by Sector. Source: Bloomberg Financial LP

Volatility is currently observed in the broader European market. Source: xStation

The German DE40 Index is attempting to retest its highs. Bulls aim to recapture the all-time high (ATH) at 22,996, while bears will seek a move below the 78.6% Fibonacci retracement level and a test of the 30-day SMA at 22,663. The RSI remains unable to break the bearish divergence that began last month, as a higher high above the trendline has yet to form. Meanwhile, the MACD remains tight after a bearish crossover. Source: xStation

Financial News 

• Airbus Upgraded to Hold by Berenberg - Berenberg analyst Philip Buller raised Airbus SE to hold from sell, setting a €140 price target that implies a 16% downside. Investors following Buller's previous recommendation experienced a negative 1.3% return over the past year, compared with a 1.3% overall return on Airbus shares.

• Deutsche Bank Maintains $1.25B AT1 Bond - Deutsche Bank AG has decided not to exercise its call option on $1.25 billion of 4.789% Additional Tier 1 bonds, breaking with market expectations. The lender cited its "case-by-case approach" while simultaneously announcing it would redeem a separate $1.5 billion AT1 bond with a 7.5% coupon on April 30, highlighting extension risk for investors.

• Nike Shares Drop on Weak Outlook - Nike shares fell up to 5% in premarket trading after the sportswear maker signaled further declines in revenue and profitability due to its ongoing merchandise reset. The impact extended to European partners, with JD Sports falling 6.5%, Puma dropping 2.9%, and Adidas (ADS.DE) declining 0.5%. Q3 revenue fell 9.3% year-over-year to $11.27 billion, with significant weakness in Greater China (-17%) and EMEA (-10%).

• Douglas Shares Plummet After Profit Warning - German beauty retailer Douglas AG shares dropped 23.5% to a record low of €11.27, less than half their €26 IPO price from March 2024, after lowering its sales forecast to €4.5 billion from €4.7-4.8 billion. The company cut its net income outlook to €175 million from €225-265 million, citing deteriorating consumer sentiment and slower market development in its key markets of France and Germany.

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