DE40: Siemens Energy gains 12%; European stocks remain under pressure 💡

Overall market situation:

Sentiment in the European market remains mixed. Most stock indices are currently losing value. The German DAX is down 0.4%, the French CAC40 is down 0.6% and the British FTSE100 is down 0.9%.

Today's key macroeconomic event is the ECB's decision on interest rates in the eurozone, with expectations of a 25 basis point cut. In the US, attention is focused on the Philadelphia Fed index, which is expected to show a decline, and unemployment claims data, interpreted in light of Powell's recent comments.

Distribution of today's European corporate returns. Source: xStation

The German DE40 index is up 0.57% intraday today. The extension of the rally is taking the contract down to the 100-day EMA (purple line) and the local highs of April 9 and 10, which are a point of technical resistance. Source: xStation

News:

Hermes (RMS.FR) shares are down 1.2% today after the French luxury goods maker’s first-quarter sales fell slightly below analyst estimates, fueling concerns that even companies aimed at the most affluent customers could be vulnerable to a slowdown in demand for high-end goods. On the other hand, the group is reaffirming its medium-term revenue growth target at constant exchange rates. That’s why declines of up to 4.5% were quickly limited.

Q1 RESULTS

• Sales at constant exchange rates +7.2%, estimated +7.89%
• Leather goods sales at constant exchange rates +10%, estimated +10.8%
• Watches revenue at constant exchange rates -10%, estimated -3.9%
• Perfumes revenue at constant exchange rates -0.5%, estimated +7.06%
• Silk and textiles revenue at constant exchange rates +4.5%, estimated +3.64%
• Ready-made garments revenue at constant exchange rates +7.2%, estimated +9.34%
• France revenue at constant exchange rates +14.2%, estimated +10.3%
• Europe revenue at constant exchange rates +13.3%, estimated +13.1%
• Japan revenue at constant exchange rates +17.2%, estimated +12.7%
• Asia-Pacific revenue at constant exchange rates +1.2%, estimated +4.02%
• Asia revenue at constant exchange rates +3.7%, estimated +5.39%
• America revenue at constant exchange rates +11%, estimated +8.55%
• Revenue €4.13 billion, +8.5% YoY, estimated €4.16 billion

Evotcec (EVT.DE) shares are gaining nearly 5.5% after the company reported better-than-expected 2024 results. Adjusted EBITDA came in at €22.6 million, -66% YoY, versus expected €12.9 million.

Siemens Energy AG (ENR.DE) shares are up sharply after the company significantly raised its revenue and net profit forecasts for the fiscal year, citing demand for gas turbines, gas services and electrical products. The German carmaker expects comparable revenue to rise 15% this fiscal year, up from 10% previously. Net income is expected to rise to €1 billion, up from a previous forecast for breakeven. Shares are up nearly 12% today.

More German news. Source: Bloomberg Financial LP