DE40: Halt on European indexes, Novo Nordisk freezes hiring expansion

• European Indexes Hold Their Breath

• German DAX slightly down

• Novo Nordisk announces hiring freeze

• CTS Eventim falls after earnings report

European investors remain cautious ahead of the upcoming symposium in Jackson Hole. Yesterday’s Fed minutes were primarily hawkish. The Federal Reserve's attention is focused on combating inflation, which partly suggests that the decision to cut interest rates might be postponed. At the same time, it is worth remembering that these minutes referred to a meeting held before the release of very weak labor market data. Nevertheless, the reception of the minutes points to a slight correction in market expectations toward a tighter monetary policy by the Fed. This is reflected in investor sentiment, as some European investors are opting to take profits, while others are hedging their positions. This trend has reinforced consolidation since the beginning of the week.

The mixed sentiment is mirrored in futures movements. The French (FRA40 -0.6%) and Swiss (SUI20 -0.6%) markets are performing the worst today. Declines are also visible in futures for the Dutch (NED25 -0.4%) and Spanish (SPA35 -0.3%) indexes. The German DE40 is down 0.3%, while futures for the Italian ITA40 index are the only ones among the major European markets to record gains (+0.2%).

Current volatility on European market. Source: xStation

DE40 (1H)

Futures for the German DAX (DE40) index show continued consolidation with a clear downtrend in terms of local highs (on the 1H interval). Given the current futures levels this week, a clear support level is emerging at 24255-25280 points. A halt in trading in this area (as indicated by the first half of the session) should lead to a short-term rebound, with a range of approximately 24335 points (determined by the 23.6% Fibonacci retracement). This aligns with the upper boundary of the consolidation.

A climb above this level will encounter another solid resistance near the psychological barrier of 24400 points, which is further supported by the upper trendline drawn from the local high on August 15th. Above that lies a key level for the current short-term consolidation, determined by the 50% Fibonacci retracement and local highs from the beginning of this week. As a result, if futures trading moves above this zone, it could serve as a clear signal for the bulls to take control and push the price towards new weekly highs.

Source: xStation

Company news: 

• Novo Nordisk (NOVOB.DK) has announced a hiring freeze in non-critical business segments. This move is the first step toward reducing the company's costs, which is a crucial aspect of defending the high operating margin for the drug manufacturer's valuation. Maintaining such high levels (the average margin for the last 16 quarters is 44%) may be particularly difficult in the face of increased hiring expansion, which stemmed from strengthening the company's production capacity. Now, with the prospect of high revenue growth threatened by fierce competition from Eli Lilly and the presence of cheaper copycat drugs in the US market, the company must seek cost adjustments to maintain high margins. Investors reacted positively to the management's announcement, with Novo's shares rising over 1.3% today.
• Voltabox (VBX.DE) has signed an agreement to acquire all shares of GMS Electronic Vertriebs. GMS, based in Jockgrim, has been distributing electronic components and devices to the medical, industrial, and telecommunications sectors for over 25 years. The transaction will be conducted 75% in cash, with the remaining value transferred in the company's shares. Due to the planned consolidation later this year, Voltabox has raised its full-year forecasts. The company now expects revenues of €23-26 million (up from previous forecasts of €15-20 million). Voltabox shares have climbed 12%, and the company is now trading at its highest level since 2019.
• CTS Eventim (EVD.DE) shares are down almost 19% today after the announcement of its H1 2025 results. The leader in the European ticket sales and event organization market recorded a 7.6% year-on-year increase in revenue to a record high of €1.29 billion. Adjusted EBITDA was €200.5 million, a decrease of 0.8% year-on-year. The EBITDA performance was impacted by cost pressure in the live-entertainment segment and the effect of integrating the newly acquired companies, See Tickets and France Billet. The company has not yet provided specific full-year forecasts, but in earlier statements, management expected a slight increase in both revenue and EBITDA for 2025. The first half of the year does not yet support this scenario, which has led to the stock price falling to this year's lows.