DE40: Porsche deliveries declined in 1H24

• DAX with a slight correction 
• Germany's largest industrial workers' union calls for 7% wage increase
• Adidas records largest drop in June estimated sales in the whole sector  
• Porsche reports a 7% y/y drop in deliveries sold in 1H24

Today's session brings slight corrections to the DAX index, which is losing about 0.2%. Post-election turmoil from France continues to weigh on German market quotations. Despite the avoidance of the market's most undesirable scenarios, the current shape of the parliament creates the risk of a legislative standstill, which makes it even more difficult for investors to price future decisions of the French government. 

Investor attention will also shift overseas today, where Jerome Powell will deliver his speech on the direction of monetary policy. Guidance on the Fed's future policy direction will be a key aspect shaping the stock market today, both overseas and in Europe. Recent data from America has reinforced investors' belief that an interest rate cut scenario is likely as early as September. 

In Germany, one of the largest industrial workers' unions is upholding its call for a 7% wage increase. The leadership of IG Metall, which unites more than 2.8 million workers, point out that while the rate of inflation is slowing, it still means rising already high prices. On the other hand, the union's major employers (including Thyssenkrup and Siemens Healthineers) have rejected the demands, calling them "excessive." The rate of wage growth will be one of the leading indicators watched by the ECB when it decides on the future of its monetary policy. 

Siemens Healthineers and Rheinmetall are rising the strongest today after news of the rejection of unions' demands. Source: Bloomberg Finance L.P. 

Among the sectors in the German market, real estate and consumer staples are doing best today. The consumer discretionary sector is losing, weighed down by declines among car manufacturers. Source: Bloomberg Finance L.P. 

The contract for the DAX index (DE40) is recording a slight reversal from the local peaks of two days ago. Slowly, a pennant formation is forming on the chart, which, due to the previous increases, if broken out, may indicate further increases, driving the contract towards the level of 18840 points. Source: xStation

Company news: 

• Mercedes-Benz (MBG.DE) is leading the DAX index's decline today. The company is losing nearly 3.5% today. The declines are bolstered by BofA's downgrade of its recommendation to "Underperform." According to analysts, the company's aging fleet will slow sales growth in the coming years. Moreover, under the influence of weakening demand for electric cars, Mercedes announced further cuts to the EV segment. This time, the company announced a reduction in the expected output of electric car battery power from its target of 2022. 200 GWh contracts with CATL ensure the company's future supply of batteries with a total capacity of 100 GWh, on top of batteries with a total capacity of 40 GWh from ACC, in which Mercedes has a 30% stake. This puts the company's planned construction of two new factories in Germany on hold, and according to management announcements, the current contracting meets new assumptions related to the direction of the EV market. 
• Adidas (ADS.DE) recorded the largest sales decline in June compared to the rest of the sector, according to Bloomberg Second Measure data. The company's sales fell -38% year-on-year, while the median for the sector as a whole declined -9.1%. Bloomberg Second Measure data monitors credit and debit card transactions of U.S. customers. 
• Porsche (P911.DE) reported a 7% decline in deliveries in the first half of the year. The decline is mainly due to challenges in the macroeconomic situation and a tight Chinese market. The total number of vehicles sold is 155,945, of which the company recorded a 33% y/y decline for the Chinese market and a 6% y/y decline for the US. On the other hand, better sentiment was recorded in the German market, where the number of deliveries rose to 22%.