- DE40 gains 1.75%
- Arms, financial and industrial sectors are leaders in growth in Europe
- Mixed Adidas forecasts push stock prices down
General market situation: European markets are trading significantly higher during Wednesday’s trading session. The German DAX on the cash market is already adding almost 3.3% (DE40 contract, on the other hand, 1.77%). The main topic of the day is still the negotiations between Ukraine and the US/European countries to conclude aid agreements for the country struggling with the armed conflict. The latest information on customs changes, as well as PMI data for the services sector, also remain an important element.
On the broader European market, we are observing significant increases in the prices of shares of companies representing the main sectors of the economy. Source: xStation
The German DE40 index is gaining 1.85% today on an intraday basis. 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 21,230 points. Technically, DE40 continues to maintain a stable upward trend. Source: xStation
Corporate news:
One of the best performing sectors of the economy in Europe today are banks. The declines in German Budnow quotes and the simultaneous increase in the yields on German debt securities mean that, together with the estimated large investment outlays on armaments (through debt issuance), the largest financial institutions in Europe are doing very well.
Source: xStation
This information also has a very good effect on arms companies…
Source: xStation
… as well as industrial companies that cooperate closely with the arms sector. In addition, Chancellor Friedrich Merz plans to create a €500 billion infrastructure fund to invest in sectors such as transport, energy networks and housing.
Source: xStation
On the other hand, Adidas (ADS.DE) shares are doing relatively poorly, as the company said it expects an operating profit of €1.7 billion to €1.8 billion this year, below the €2.07 billion analysts were expecting.
Bayer (BAYN.DE) shares are currently gaining more than 2% after the company provided relatively good guidance for the full year. Bayer is forecasting adjusted EBITDA in 2025 of €9.5 billion to €10 billion, based on an estimate of €9.53 billion. Basic earnings per share are expected to be between €4.50 and €5.00, based on an estimate of €4.61.
More news from individual DAX companies. Source: Bloomberg Financial LP
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