DE40 jumps above 17,500 pts

• European stock market indices trade mixed
• DE40 jumps above 17,500 pts
• Duerr gains after providing better-than-expected sales outlook

European indices launched today's trading little changed, but some of them have caught a bid later on. German DAX is now trading 0.4% higher on the day and at fresh record highs. Economic calendar for the European morning session today is empty, with no noteworthy releases scheduled. 

Source: xStation5

DAX futures (DE40) leaped to fresh all-time highs today. Taking a look at DE40 chart at 30-minute interval, we can see that the index broke above the upper limit of a short-term 17,405-17,485 pts trading range. Upward move accelerated later on and the index broke above the 17,500 pts mark for the first time in history! A textbook range of the upside breakout from the sideways move suggests a possibility to a move as high as 17,565 pts, so there is still some room for the current upward impulse to extend. 

Company News

Munich Re (MUV2.DE) announced that it plans to return around €3.5 billion to shareholders. German reinsurance company plans to repurchase own shares worth up to €1.5 billion, with the program running from April 2024 through April 2025. Apart from that, Munich Re also proposed boosting annual dividend from €11.60 to €15.00 per share.

Puma (PUM.DE) reported a 9.8% YoY drop in Q4 revenue to €1.98 billion (exp. €1.98 billion). On a geographical basis, the drop was driven by a 15% YoY plunge in Americas sales. On a product basis, the drop was driven by 12% YoY decline in footwear revenue. Excluding FX impact, total revenue was 4% YoY lower (exp. -2.7% YoY). EBIT at €94.4 million was slightly lower than €98.4 million expected, while net income at €0.8 million was 43% YoY lower (exp. €4.8 million). Company boosted 2023 dividend to €0.82 per share (exp. €0.75).

Duerr (DUE.DE) reported a 7.3% increase in sales in 2023, to €4.63 billion (exp. €4.63 billion). Adjusted EBIT increased 21% to €280.4 million (exp. €258.3 million), with adjusted EBIT margin improving from 5.4% in 2022 to 6.1% in 2023. Diluted EPS came in at €1.55, and was lower than €2.39 expected, as well as €1.81 reported in 2022. Duerr expects 2024 order intake to reach €4.6-5.0 billion (exp. €4.83 billion) with sales reaching €4.7-5.0 billion (exp. €4.87 billion).

Schaeffler (SHA.DE) will invest over $230 million to build an automotive manufacturing facility in Ohio, in an attempt to expand its operations in the United States. Construction is expected to be in mid-2024 and expected to be completed in the third quarter of 2025. The site will manufacture electric axles for light and medium-duty vehicles.

Duerr (DUE.DE) jumped after providing better-than-expected sales outlook for 2024. Taking a look at the chart at H1 interval, we can see that the stock bounced off the €19.80 support zone and rallied towards the resistance zone in the €20.80 area, marked with 38.2% retracement of the downward move launched in the second half of January 2024. Source: xStation5