DE40: Old Continent on a surge at the end of the week

• European markets gain at the end of the week
• Airbus and Porsche present their 2023 delivery results
• Investors focus on PPI data from the U.S. and Q4 earnings releases from major U.S. banks

Overall market situation:

The last session of the week on the stock exchanges of the Old Continent brings sizable increases in stock indices. Germany's DAX gains nearly 0.85%, France's CAC40 rises 1%, and the Euro Stoxx 50 adds more than 0.89%. In Germany, investors are reacting primarily to the delivery results of Porsche and Airbus. Companies from the arms sector are also posting gains. In the second part of the session, investors' attention will focus on PPI data from the US and the publication of Q4 results of the largest US banks.

European companies traded during Friday's trading session are currently recording sharp increases. Source: xStation 5

Germany's benchmark DE40 is gaining nearly 0.34% during today's session. Overall, the benchmark is trading all the time in a local consolidation zone close to historical highs. During today's and yesterday's sessions, DE40 tested the lower limit of this channel. Source: xStation 5

News:

Airbus (AIR.DE) shares are gaining more than 5% in today's session as the company exceeded its aircraft delivery targets for 2023. In total, the company delivered more than 735 aircraft to 87 customers worldwide (up 11% year-on-year). The target set by the company itself was to deliver nearly 720 aircraft. Stifel analysts commented that Airbus' results unprecedentedly beat Boeing's book value. The values presented for 2023 augur well for sector momentum in 2024 as well, and operating results/cash flow alone could prove to be higher than annual forecasts, Deutsche Bank analysts communicated. 

Defense stocks are seeing clear buying pressure in the European stock market. Yesterday's reports of an alleged attack on the U.S. embassy in Iraq and the subsequent bombing of Houthi positions are spurring interest in defense companies, which are gaining on new weapons programs in times of uncertainty. Rheinmetall (RHM.DE) shares are gaining nearly 1.2% today and climbing to new all-time highs. Hensoldt (HAG.DE) is currently leading the sector, with its shares currently gaining nearly 4%.

Porsche (P911.DE) delivered slightly more sports cars and off-road vehicles in 2023. Worldwide, deliveries reached 320,221 vehicles (3.3% more year-on-year). However, the company's shares are trading under 1.5% downward pressure today due to a drop in sales in China. 79,283 vehicles were delivered there in 2023 (-15% year-on-year). The largest sales increase in the Porsche stable was recorded for the 911 model (+24% y/y). The brand's chief sales executive communicated that 2024 will be a challenging year for the brand.  

Source: Porsche

Analyst recommendations:

* Bayer (BAYN.DE): JPMorgan maintains a "hold" recommendation on the company's shares. Target price set at 34 euros.