DE40: DAX resumes its downward momentum

• Benchmark tests key support level
• Beiersdorf reports better guidance and higher financial results

General market situation:

Tuesday's session on European trading floors brings a continuation of the downward momentum. The German DE40 is currently losing more than 0.6% and is approaching its 50-day exponential moving average. On the cash market, the benchmark Euro Stoxx 50 is currently losing 1.27%.

The macro calendar contains several noteworthy readings today. Investors learned in the morning about the better-than-expected ZEW reading, which somehow indicated an expected improvement in economic momentum in the Union's key economy. In the afternoon, we will also learn about CPI inflation data from Canada, data from the US on home construction and industrial production. The day will conclude with a number of speeches by central bankers.

European companies listed during Tuesday's trading session are mostly on the rise at the moment. Source: xStation 5

Germany's benchmark DE40 is trading down 0.64% during today's session, thus breaking out below a key uptrend support zone located near 18,155 points. Theoretically, the zone defined by the 50-day exponential moving average (blue curve on the chart) could be the next point of support worth noting. A return above the previously mentioned zone of 18,155 points could be a key resistance point for the time being. Source: xStation

News:

Beiersdorf (BEI.DE) is one of the few companies on the German stock market to post intraday gains despite the weak atmosphere. A strong earnings report and raised forecasts for fiscal year 2024 managed to lift the shares today by nearly 1.5%.

Results and forecasts:

• The cosmetics company reports Q1 organic sales growth of 7.3%, beating analysts' Vara consensus of 6.2%.
• Sales are expected to rise 6% to 8% in 2024, compared to the "mid-single-digit" growth forecast in February.
• Sales of flagship brand Nivea rose 12.6%, offsetting a 5.4% decline in the Tesa division
• Sales of luxury brand La Prairie rose 1%, reversing a downward trend from last year (-15%)

Zalando (ZAL.DE) shares also posted intraday gains. HSBC reiterated its buy recommendation on the company's shares, but raised its target price for the stock to €33 from the previous €27. In its report, HSBC praised Zalando's full-year 2023 results and the new strategic direction the online ready-to-wear group has taken, focusing more on profitable growth.

Renewable energy suppliers are suffering from falling oil prices. SMA Solar (S92.DE) and Verbio (VBK.DE) lost 3.2 and 0.7 percent, respectively.

Other news about individual companies included in the DAX index. Source: Bloomberg Financial LP