DE40: Germany’s DAX Index Hits Record High After US-UK Deal

• International Airlines Group announced a significant aircraft order of 53 new long-haul planes, consisting of 32 Boeing 787-10 aircraft

• Commerzbank AG shares rose 2.5% after Germany's second-largest lender reported its highest quarterly profit since 2011

European markets are showing mostly positive performance today. Poland's W20 is leading the gains with a significant rise of 2.17% to 2823.6. Austria's AUT20 follows with a strong performance, up 0.62% to 4209.

Italy's ITA40 has risen 0.35% to 38656, while France's FRA40, Germany's DE40, and the pan-European EU50 index all showed identical gains of 0.31%, trading at 7706.4, 23555.6, and 5281.6 respectively.

Spain's SPA35 climbed 0.29% to 13542, and the UK's UK100 edged up 0.19% to 8565.5. The Netherlands' NED25 increased 0.18% to 902.87.

Switzerland's SUI20 was one of two indices showing negative performance, down 0.21% to 12043. The volatility index VSTOXX declined 0.25% to 20.13, suggesting slightly decreased market uncertainty compared to earlier readings.

Dax Returns by Sector. Source: Bloomberg Financial LP

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

The German DE40 Index is maintaining its bullish momentum, approaching new ATH and trading above the 23.6% Fibonacci retracement level and the 50-day SMA. Bulls will aim to hold above the recent highs, while bears will attempt to push the price below it, targeting the 50-day SMA. The RSI continues to show bullish divergence with higher lows, while the MACD is widening following a bullish crossover. Source: xStation

Market News

• International Airlines Group (IAG) announced a significant aircraft order of 53 new long-haul planes, consisting of 32 Boeing 787-10 aircraft for British Airways and 21 Airbus A330-900neo aircraft that may be assigned across other IAG airlines including Aer Lingus, Iberia, and LEVEL. This follows an earlier order in March for 18 additional aircraft (six Airbus A350-900s for Iberia, six Airbus A350-1000s and six Boeing 777-9s for British Airways). The company has also secured options for 10 additional Boeing 787s and purchase rights for up to 13 more A330-900neos. IAG reported strong Q1 2025 results with revenue growth of 9.6% and operating profit before exceptional items rising by €130 million to €198 million, improving its operating margin by 1.7 points to 2.8%. The company delivered five new aircraft in Q1 and maintained positive financial outlook despite industry challenges, strengthening its balance sheet with improved net leverage to 0.9x and repaying over €1 billion in debt, which led to ratings agencies upgrading IAG and British Airways to investment-grade ratings.

• Commerzbank AG shares rose 2.5% after Germany's second-largest lender reported its highest quarterly profit since 2011, with net profit increasing 12% year-over-year to €834 million, significantly exceeding analysts' expectations of €698 million. Total revenues climbed 12% to €3.1 billion, driven by stronger-than-expected interest and commission income, while loan loss provisions came in at just €123 million, well below the forecast €162 million despite economic challenges. The strong results come as Commerzbank seeks to strengthen its case for independence amid pressure from Italy's UniCredit, which has amassed a 28% stake in the bank and received clearance to increase its direct shareholding to just under 30%. CEO Bettina Orlopp, who took over in October, emphasized the bank's ability to "grow even in economically challenging times" while implementing its standalone strategy, which includes plans to cut 3,900 jobs and boost profitability by two-thirds by 2028. The bank's shares have surged more than 70% over the past 12 months, reflecting growing investor confidence and takeover speculation ahead of its annual general meeting next week.

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