-
DAX tries to break above yesterday's opening levels
-
Attention focused on quarterly results and GDP data from the US
Thursday's session on European markets brings an improvement in sentiment among the major benchmarks from the Old Continent. The DAX is currently struggling to break above yesterday's opening levels, largely driven by the publication of relatively good quarterly results from companies in Europe and the US. Investors' attention today is focused on the US data package, where, among other things, we will learn GDP data and the PCE inflation report.
The mood in Europe during Thursday's trading session clearly improved from the sentiment at the beginning of the week. Source: xStation 5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appNews:
Investor attention in Europe today is primarily focused on the quarterly results of Deutsche Bank (DBK.DE) and Barclays (BARC.UK).
Barclays:
Profit before tax beat analysts' estimates (by 13%); and the investment banking and corporate banking units booked almost the second highest results in the Bank's history. The institution also saw an inflow of nearly £10bn in new deposits, a direct result of the decline in confidence resulting from systemic problems in the banking sector. Loan loss provisions have also increased, although the bank says the lending environment is normalizing.
It was the very good data from the investment banking sector on the back of peers that lifted the bank's shares more than 5% higher. Analysts were also pleased to see an improved capital position. Source: Bloomberg
Barclays FICC traded up 9%, beating analysts' expectations. Source: Bloomberg
Detailed results presented by Barclays. Source: Bloomberg
Deutsche Bank:
Deutsche Bank's results came out relatively mixed. The bank communicated that its profit increased and that it will look to start a share buyback program in the second half of this year. What's more, the bank plans to cut expenses by an additional €500 million, for a total saving of €2.5 billion, by reducing headcount and making improvements in its mortgage and retail divisions. On the other hand, however, the mood is spoilt by weak results for debt trading (FICC, table presented for Barclays). The bank maintained its long-term earnings targets, adding that it intends to exceed revenue forecasts. The better-than-expected revenues were mainly attributable to strong interest performance in corporate and private banking, which neutralized the negative outlook for IB and FICC results.
IB and FICC results fell short of analysts' expectations, but the results themselves are improving over time. On the other hand, the private banking and corporate banking units continue to surprise positively. Source: Bloomberg
As for the outlook for the rest of the year, Deutsche expects revenues to be close to EUR 28-29 billion, the dividend to be EUR 0.3 per share and the share buyback programme to come into effect in the second half of the year. Source: Deutsche Bank
Deutsche Bank (DBK.DE) detailed results. Source:Bloomberg
Major percentage changes and news from individual companies in the DAX index. Source: Bloomberg
DE30 chart
Futures based on the German DAX index (DE30) are trading up today and attempting to break above yesterday's opening levels. Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
