DE40 narrows yesterday's losses; Bayer curbs M&A activity 💡

• DE40 kicks off Tuesday trading with gains
• Suedzucker gains despite release of worse quarterly results
• Bayer cuts M&A activity to reduce debt
• Reinet Investments SCA offers to sell its 2% stake in British American Tobacco

European stock indices began Tuesday's trading with gains. The DAX is currently gaining 0.45% on an intraday basis while the UK's FTSE100 is up 0.16%. The CAC40, meanwhile, adds 0.3%. 

Investors are awaiting the first inflation data from the US today, namely the PPI reading. Together with tomorrow's CPI report, this could be the data that will increase volatility in the major financial markets.
 

Volatility currently seen in the broader European market. Source: xStation

Germany's DE40 index is rebounding after the wave of pessimism that swept the first trading session of the week. The most important support for the index invariably remains the 50-day EMA (blue curve on the chart). Technically, the DE40 continues to maintain a stable upward trend all the time. Source: xStation

News

Europe's largest sugar producer, Suedzucker (SZU.DE), reported a quarterly operating loss on Tuesday. 

The company reported a group operating loss of €33 million in the third quarter to the end of November 2024/25 fiscal year, compared to an operating profit of €268 million in the same quarter of the previous year.

The company's shares are rebounding in today's session, however, as Suedzucker warned in October that its third-quarter profits would decline, so the published figures did not surprise investors. What's more, the company confirmed that the group's operating profit for the full year 2024/25 will fall to 175-275 million euros from 947 million euros in the previous fiscal year. Some in the market may have expected the forecasts to be revised downward as well, following recent comments

Bayer (BAYN.DE) shares are gaining close to 0.5% today after the company said it is seeking to reduce its overall debt balance, estimated at 38 billion euros. The plan is to reduce M&A activity in the near term.

British American Tobacco (BATS.UK) shares are losing 1.8% today after Reinet Investments SCA offered to sell its 2% stake (nearly 43.43 million shares) in the company. Significantly, however, investor demand exceeded the number of shares on offer shortly after the start of the transaction, according to an announcement published by Bloomberg.            

Other news from major German companies. Source: Bloomberg Financial Lp