DE40: Sell-offs continue in Europe; automotive companies in focus 💡

General market situation: European stocks are losing ground today, extending the downward correction initiated yesterday. The German DAX is currently losing 1%, while the French CAC40 is down 0.58%. The Polish market is doing poorly, with losses reaching 0.6%. The most important macroeconomic data for today are the final GDP reading in the US (Q4), jobless claims in the US, EIA data on gas inventories and the decision on interest rates in Norway.

Distribution of today's returns of companies included in the DAX index. Source: xStation

The German DE40 index is losing 0.14% today intraday. The most important support for the index remains the 50-day EMA (blue line on the chart) and the support area of ​​the consolidation zone close to 22,250 points. Technically, the DE40 is still maintaining a stable upward trend. Source: xStation

News:

• The main topic of today's session on the German stock market is the tariffs imposed on the automotive sector. You can find more details in our previous post.
• J.P. Morgan analysts have lowered their recommendation for BASF SE (BAS.DE) from neutral to underweight. The target price was set at 45 EUR.
• A Barclays analyst has lowered their recommendation for Bayerische Motoren Werke AG (BMW.DE) from equalweight to underweight. The target price was set at 73.5 EUR per share.
• Symrise (SY1.DE) reported that the dividend per share for the full year does not meet the average analyst estimates. Dividend per share EUR 1.20, estimated EUR 1.23. EBITDA margin for 2025 is to be around 21%, also estimated at 21%.
• Hennes & Mauritz AB (HMB.SE) reported operating profit of 1.2 billion Swedish crowns in the first quarter, below the 1.9 billion expected by analysts. The company’s sales and earnings were “slightly weaker than planned” due to excess inventory, higher purchasing costs and increased discounts on clothing. The company’s shares are currently up 0.5%.

More news from DAX companies. Source: Bloomberg Financial LP