DE40: Europe Edges Lower Amid G7 Tensions

The sentiment in Europe is gloomy, as investors weigh the dim prospects of a Middle East ceasefire and rising tensions among G7 leaders. The indices are trading in the red in all four corners of the continent (DAX: -0.87%, CAC40: -0,9%, FTSE 100: -0,36%, FTSE MIB: -1,26%).

At the G7 summit, tensions escalated as former U.S. President Trump criticized French President Macron over ceasefire talks in the Israel-Iran conflict, calling him a “publicity seeker” after Macron suggested the U.S. was pushing for a cease-fire. Trump’s early departure and conflicting views highlight growing rifts between the two leaders, with Macron advocating diplomacy while Trump faces pressure to support military action against Iran’s nuclear facilities. These disagreements deepen existing strains over issues like Ukraine and Russia, exposing cracks in the transatlantic alliance.

DAX-listed companies today. Source: xStation5

Among Eurostoxx 600 sectors, only Energy defies the bearish trend. Source: Bloomberg Finance LP

DE40 (D1)

The DAX index futures have been declining since reaching their all-time high of 24,499.7. However, it's important to note that the bears have yet to break through a key support level, which also aligns with levels indicated by Fibonacci retracements. As shown on the chart, the price has tested the 23,339.6 level twice but failed to break below it. This week could bring significant volatility to the index due to upcoming economic data from the U.S.

Source: xStation5

Company news:

• DTE.DE: Deutsche Telekom shares fell up to 2.5% after SoftBank sold 21.5 million T-Mobile US shares at a 3% discount, raising $4.8 billion. T-Mobile is 59% owned by Deutsche Telekom, making it the largest shareholder.

• DBK.DE: German prosecutors have dropped the greenwashing probe into former DWS (Deutsche Bank’s investment arm) CEO Asoka Woehrmann, citing lack of public interest as he’s no longer active in capital markets. The investigation began after 2021 whistleblower claims and led to DWS raids in 2022 and 2024. DWS settled the case in February with a €25 million payment. Deutsche Bank’s shares lose 1.55%.

• BAYN.DE: Bayer has filed for US FDA approval of gadoquatrane, a low-dose gadolinium-based MRI contrast agent for use in adults and children, including neonates. The application is supported by global Phase III Quanti studies. Bayer also plans further regulatory filings in other countries. The stock is down 1.85%.

• KER.FR: Renault CEO Luca de Meo, known for brand revival and bold marketing moves, has been named CEO of Kering, owner of Gucci. Though new to luxury, De Meo's branding skills and passion for style are seen as assets amid Kering's struggles, including weak Gucci growth, leadership churn, and rising debt. Despite investor concerns over his lack of fashion experience, analysts praise his turnaround record at Renault. His task: reignite Kering’s appeal and restore growth in a stagnating luxury market. Kering’s stock trades 2.7% lower today.

• SAF.FR: Safran edges down 0.2% despite plans to acquire Collins Aerospace’s actuation and flight-control business from RTX for $1.8 billion, including debt. The deal aims to enhance Safran’s capabilities in flight control systems and electrification for next-gen platforms. The acquired business is expected to generate $1.5 billion in sales and $130 million in EBITDA in 2024. The acquisition, subject to regulatory and employee approvals, is expected to close in the second half of 2024.

• NOD.NO: Nordic Semiconductor’s up 1.7% after it acquired the IP and core technology of Neuton.AI, a leader in TinyML for edge devices. The deal supports Nordic’s goal to advance edge AI by combining its ultra-low-power wireless tech with Neuton.AI’s automated platform that generates ultra-compact ML models (under 5 KB). The acquisition includes Neuton.AI’s team and assets, with the brand continuing during integration. Financial terms weren’t disclosed; regulatory approval is pending.