DE40: DAX near the all-time highs zone 📈

• German DAX in the zone of historical peaks in the first part of Thursday's session
• Nvidia limits declines ahead of Wall Street session opening
• Strong decline in European electric car sales

Overall market situation:

Thursday's session on European stock markets is proceeding in an improving mood. Germany's DAX is currently gaining 0.59% on an intraday basis. At the same time, France's CAC40 is adding 0.69%. Despite yesterday's plunge following the release of Nvidia's results today, sentiment is improving today, with pre-session trading indicating that NVDA shares are currently losing only 2.5%. Thus, the DAX index remains close to its all-time highs. 

Volatility currently observed in the broad European market. Source: xStation 

Germany's benchmark DE40 traded nearly 0.65% higher during Thursday's session and has continued its dynamic upward trend throughout. The index broke above the key resistance level set by the 50-day EMA (blue curve on the chart) and the local peaks of the consolidation zone of the last few sessions. A vigorous breakthrough of these zones could theoretically open the way for further increases towards the historical peaks at 19,000 points. On the other hand, however, it is worth bearing in mind that the scale of the recent rebound is sizable, which may lead investors to book some of the gains. In this aspect, a relatively important support zone may be the previously mentioned 50-day EMA and 100-day EMA (purple curve on the chart). Source: xStation

News:

Pernod Ricard (RI.FR) shares are gaining nearly 5% in today's session, after China said it would not take any anti-dumping measures against the company for the time being, the company itself reported annual results that were almost in line with expectations. 

ANNUAL RESULTS

• Net profit €1.48 billion, -35% y/y, estimated €2.12 billion 
• Operating profit €3.12 billion, -6.9% y/y, estimated €3.11 billion
• Organic operating profit growth +2%, +0.56% estimate
• Sales €11.60 billion, -4.4% y/y, estimated €11.69 billion
• Advertising and promotion expenses EUR 1.87 billion, -3.5% y/y, estimate EUR 1.9 billion
• Dividend per share €4.70, estimate €4.43
• Free cash flow €963 million, -33% y/y, estimates €1.09 billion
• Net debt EUR 10.95 billion, +6.6% y/y, estimates EUR 10.67 billion

Q4 RESULTS

• Sales EU 2.66 billion, +1.2% y/y, estimates EU 2.74 billion
• Sales in America 766 million EU, +5.2% y/y, estimates 769 million EU
• Sales in Asia and the rest of the world 1.11 billion EU, +3.2% y/y, estimates 1.17 billion EU
• Sales in Europe 789 million EU, -4.8% y/y, estimate 809.5 million EU
• Organic sales +3%, estimate +3.24%
• Organic sales in America +5%, estimate -0.63%
• Organic sales in Asia and the rest of the world +7%, estimated +7.74%
• Organic sales in Europe -5%, estimated -2.45%
• Currency impact -3%, estimated -2.03%

COMMENTS

• Company reaffirms medium-term financial guidance of +4% to +7% organic net sales growth range and +50 bps/+60 bps organic operating margin expansion
• Organic net sales in the fiscal year will return to growth with further volume recovery and organic operating margin maintenance
• Company forecasts a weak Q1 with further inventory adjustments in the U.S., continued very weak macroeconomic environment in China and strong performance in the rest of the world
• One-time operating expenses include impairment of the wine business with partial mitigation from divestiture proceeds and reversal of Kahlúa impairment

Shares of Adler Group (ADJ.DE) are losing nearly 7% in today's session after, the company reaffirmed its net rental profit forecast for the full year. Adler Group's real estate portfolio has been externally re-evaluated, and compared to previous periods, the value of income-producing assets fell 2.1%. Net rental profit is expected to be between €200 million and €210 million.

Car sales in Europe in July were roughly at the same level as in June. On the other hand, however, a deepening of the decline in electric car sales is observed (down 37% in July). New car registrations rose just 0.4% year-on-year to 1.03 million units last month, the European Automobile Manufacturers Association reported Thursday.

Data for individual European manufacturers. Source: Bloomberg Financial LP

Other news coming out of individual companies in the DAX index. Source: Bloomberg Financial LP