DE40: Mercedes-Benz drops 1.5% after release of quarterly earnings

• DAX in mixed mood at the end of the week
• Mercedes-Benz results in the background

General market situation:

Friday's session on European stock markets brings mixed investor sentiment. Germany's DAX is currently gaining 0.12%. Britain's FTSE 100 is losing 0.05% at the same time. France's CAC40, meanwhile, is losing 0.1%. Investors' attention today turns to corporate news (Mercedez-Benz results), Tesla's stock, which saw historic gains yesterday, and macro data from the US.

Volatility currently observed in the broad European market. Source: xStation

The German benchmark DE40 is trading nearly 0.25% higher during Friday's session. The key support/resistance points of the broad uptrend appear to remain the 19,000-point zone, the 50-day EMA (blue curve on the chart) and the historical peak tested last week, which now serves as the main control zone for the supply and demand sides. Source: xStation

News:

The shares of automotive giant Mercedes-Benz (MBG.DE) are losing more than 1.5% in today's session after the company's preliminary third-quarter results failed to meet analysts' expectations. The company's chief financial officer communicated that the Q3 results did not meet the company's ambitions.

Mercedes-Benz Group AG plans to intensify cost cutting after fierce competition and weaker demand in China hit the luxury carmaker's profits. Source: Bloomberg Financial LP

THIRD QUARTER RESULTS

• Adjusted return on car sales 4.7% vs. 12.4% y/y, estimated 8.13%
• Automobiles adjusted Ebit 1.21 billion euros, -64% y/y, estimated 2.21 billion euros
• Vans adjusted Ebit 628 million euros, -15% y/y, estimated 692.6 million euros
• Mobility adjusted Ebit 285 million euros, -21% y/y, estimated 294.5 million euros
• Adjusted return on sales of commercial vehicles 13.5% vs. 15% y/y, estimated 14.4%
• Sales €34.53 billion, -6.7% y/y, estimated €36.25 billion
• Car sales €25.60 billion, -5.6% y/y, estimated €26.87 billion
• Light vehicle sales €4.66 billion, -5.7% y/y, estimated €4.85 billion
• Mobile vehicle sales 6.01 billion euros, -4.7% y/y, estimated 6.47 billion euros
• Ebit 2.52 billion euros, -48% y/y, estimated 2.56 billion euros
• Ebit cars €1.20 billion, -64% y/y, estimated €2.12 billion
• Vans Ebit 618 million euros, -14% y/y, estimated 694.8 million euros
• Mobility Ebit 285 million euros, -21% y/y, estimated 327.4 million euros
• Net profit €1.72 billion, -54% y/y, estimated €2.5 billion
• Industrial free cash flow €2.39 billion, +1.8% y/y

NatWest (NWG.UK) reported third-quarter pre-tax operating profit that topped analysts' average estimates. The company's shares are currently gaining nearly 3.5%.

Q3 RESULTS

• Pre-tax operating profit GBP 1.67 billion, estimated GBP 1.48 billion
• Net profit GBP 1.17 billion, estimated GBP 998.9 million
• Return on equity +18.3%, estimated +15.1%
• Customer deposits GBP 431.1 billion, estimated GBP 434.74 billion
• Common equity tier 1 capital ratio 13.9%, estimated 13.8%
• Adjusted cost-to-income ratio 47.6%, estimated 52.5%
• Total income £3.74 billion, estimated £3.59 billion
• Total retail banking income £1.46 billion, estimated £1.4 billion
• Total private banking income GBP 253 million, estimated GBP 227.3 million
• Total commercial and institutional income GBP 2.07 billion, estimate GBP 1.93 billion
• Net interest income £2.90 billion, estimate £2.8 billion
• Retail banking net interest income GBP 1.35 billion, estimated GBP 1.3 billion
• Private banking net interest income GBP 170 million, estimated GBP 154.6 million
• Commercial and institutional banking net interest income GBP 1.39 billion, estimate GBP 1.33 billion

ANNUAL FORECAST

Sees return on equity above +15%, previously estimated +14%, analysts expect +15%

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