- Slight rebound in Europe after yesterday's sell-off
- JD Sports' downgraded forecasts knock down Adidas and Puma shares
- Hapag Lloyd gains 11% and continues bull market in shipping companies
Overall market situation:
European stock markets are posting modest gains after yesterday's waves of sell-offs. The German DAX is currently gaining close to 0.1%, and the session itself is bringing a lot of news coming out of companies. Media attention continues to be drawn to companies in the shipping sector, which is benefiting from a surge in transportation rates in the face of uncertainty in the Red Sea. The downgrading of JD Sports' earnings forecasts reverberates through Adidas and Puma, which are clearly losing.
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European companies traded during Thursday's trading session are mostly gaining at the moment. Source: xStation 5
Germany's benchmark DE40 is gaining nearly 0.38% during today's session. Yesterday's dynamic declines lifted the benchmark to the vicinity of the local peaks of July 2023, which were beaten in December. At the moment, it is the current zone and the 16,600-point zone that could be a key checkpoint for both the buyers' and sellers' sides. Source: xStation 5
News:
Evotec (EVT.DE) shares fell more than 19% after the German biotech company announced that CEO Werner Lanthaler is stepping down and supervisory board member Mario Polywka will serve as interim CEO.
Source: xStation
Substantial gains continue for companies in the shipping and freight sectors. The turmoil in the Red Sea is raising shipping rates, which is supporting the valuations of companies in this sector. Hapag Lloyd (HLAG.DE) shares are currently gaining more than 11%.Goldman Sachs analysts estimate that spot rates for the East-West route will be almost double the levels seen before the disruption.
Source: xStation
Faintly optimistic comments from JD Sports (JD.UK) worsened sentiment in the sector.
The British sportswear retailer warned that annual profits would fall short of expectations as consumers cut back on spending. The company now expects adjusted pre-tax profits of £915-935 million for the 12 months to February 3, down from its previous forecast of £1.04 billion.
Adidas (ADS.DE) shares fell 4%, while Puma (PUM.DE) shares lost 3.2%. JD Sports shares even fell more than 20 percent in London.
Source: xStation
Analyst recommendations:
* Sartorius (SRT.DE): Deutsche Bank downgraded its recommendation on the company's shares to a "hold" rating. Target price at €315.
* Wacker Chemie (WCH.DE): Stifel downgraded its recommendation on the company's shares to a "hold" rating. Target price at €122.
